A consortium of indigenous investors is set to acquire a 10% stake in Unki, a unit of Anglo American.
Report by Our Staff
This is as part of the platinum miners’ move to comply with the indigenisation legislation.
The Indigenisation and Economic Empowerment Act states that locals should have a controlling shareholding in all foreign- owned companies operating in the country.
According to a plan announced last week, the Tongogara Rural District Community Share Ownership Trust would get 10%, employees (10%), a consortium of indigenous investors (10%) while the National Indigenisation and Economic Empowerment Fund (NIEEF) would have 21%.
The 51% controlling shareholding is valued at US$142,8 million.
According to the plan, the transaction value has been arrived at after deducting an indigenisation discount of US$312 (53%) in recognition of the sovereign ownership of resource from the company’s value of US$592 million.
This is the first time that a consortium of local investors is in line to buy shareholding as in previously announced plans, only employees, community and NIEEF had benefited.
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The transaction would be consummated via a loan from the platinum miner to be repaid through the waiver of dividends due to locals for 10 years. The loan is available at an interest rate of 10% per annum.
According to the plan, the local consortium, community and employee trusts would have one director each on the board.
NIEEF would appoint three directors.
All shares that would have been issued to the community trust, employee trust and NIEEF, would be pledged as security until the loan advanced for its acquisition is repaid.
The indigenisation legislation has been blamed for unnerving investors who are much needed in reviving the economy.
According to the medium-term plan, the government wants investments to contribute 20% to gross domestic product from the current 4%. Finance minister Tendai Biti announced in July that the government had agreed to exempt new investors from complying with the clause that states that at least 51% should be given to locals in a charm offensive to lure investors.
On Thursday, Youth Development, Indigenisation and Empowerment minister Saviour Kasukuwere said he was merely enforcing the law and would not stop until the economy is fully indigenised.
