ZCCM-IH has approved a reorganisation of its portfolio with the Industrial Development Corporation (IDC) where both entities will transfer their equity held in three corporate entities to the other to achieve optimisation of operations within the IDC/ZCCM-IH Group.
In a market announcement, Friday, ZCCM-IH stated that it was reorganising its portfolio with the IDC, which would see the transfer of their equity held in three separate corporate entities to the IDC, and vice versa, subject to shareholder and regulatory approvals.
Following board approval, ZCCM-IH will transfer its 71.4 per cent equity stake in Investrust Bank Plc to the IDC, and transfer its 100 per cent stake in Mushe Milling Limited to the IDC both at fair market value.
On the other hand, the IDC would transfer its 25 per cent equity stake in Kagem Mining Limited, at fair market value, to ZCCM-IH all in an effort to achieve optimisation of operations and unlock opportunities for synergy within the IDC/ZCCM-IH Group.
“These three corporate actions listed above will be undertaken simultaneously as a corporate group reorganisation exercise involving IDC and ZCCM-IH and constitute the proposed Group Portfolio Rationalisation and Reorganisation,” stated ZCCM-IH via its sponsoring broker, Stockbrokers Zambia Limited.
“Rationale for the Proposed Group Reorganisation: The Board considers that the proposed Group Reorganisation will enhance and improve operational efficiency and performance of ZCCM-IH by realigning and streamlining management oversight on its investments portfolio to support and sustain Company growth and unlock value for its shareholders going forward.”
The IDC portfolio currently includes companies in the banking sector, specifically: Zanaco Plc, Indo-Zambia Bank and the Zambia Industrial and Commercial Bank, and Superior Milling Limited in the maize meal milling industry.
It was established in 2014 to spearhead the development of Zambia’s domestic industrial capacity, and play a major role in job creation, while ZCCM-IH on the other hand, is an investments holding company with diversified interests in mining, energy, banking, property and other sectors of the Zambian economy.