Fin24

Implats gives up 51% Zimplats stake

2012-03-13 17:55

Harare -Zimbabwe and Impala Platinum Holdings [JSE:IMP], the world’s second-largest platinum producer, said on Tuesday they agreed on the transfer of a 51% stake in the company’s local unit Zimplats to black investors in the country, as required by the government.

“Essentially we have found each other and that augurs well for the mining industry in Zimbabwe,” Implats chief executive David Brown told a news conference after a joint statement confirmed the deal.

The agreement ends a war of words between the government and Implats over the ownership requirement, which had jolted investor confidence and was widely seen as a populist tactic by President Robert Mugabe’s ZANU-PF party in the run-up to elections expected later this year.

It remained unclear however how the cash-strapped Zimbabwean government would pay for the stake worth hundreds of millions of dollars.

The joint statement said the 51% would be broken down as follows: 10% to the community, another 10% to Zimplats employees and 31% to the state’s National Indigenisation and Economic Empowerment Fund.

“The details are about the value. How do they value the shares? All that is to be worked out,” he said.


Comments
  • Leon Curling-Hope - 2012-03-13 18:08

    Mark my words, in a few years from now the Zimbabwe government and "Mr Bob" will be asking once agin for help from private and western companies.

  • Michael - 2012-03-13 21:28

    Once the "re-structuring" starts.... sorry for you Zimplats

  • Warren - 2012-03-14 02:35

    Although i respect fin24 i don't agree with the language...i have read numerous articles on this issue and we are following it closely to understand whats going on in Africa but to refer to local people as blacks its not only offensive and disrespectful but out of context..it shows how far you are yet to go to address racism in southern Africa.They are called local investors..not black investors..please apologise and rephrase your article or you risk losing our respect and interest in southern African investments.

      aidan.hillebrand - 2012-03-14 05:45

      I think you are being to sensitive regarding the wording used. In essence the article is correct since the Indigenisation Act excludes Zimbabweans of European decent. The definition taken from the act reads:"“indigenous Zimbabwean” means any person who, before the 18th April, 1980, was disadvantaged by unfair discrimination on the grounds of his or her race" Does this not mean "black"?

      Sifiso - 2012-03-14 11:51

      U r too sensitive, just like your father Mugabe, relax...black investors are black investors , that's it.

      carl.betley - 2012-03-14 12:34

      Is it offensive to call white people "whites"

  • ltmakunike - 2012-03-14 07:37

    That wasnt so hard was it? Do you have always to be pushed to share with the owners of the resources? WASU

  • Franklin - 2012-03-14 08:09

    @ Warren, What you not realizing is that the blacks in Zim are STEALING the shares from Implats. Not white people, not yellow or red people--black people. So what is your problem? Sheesh.

  • Jack - 2012-03-14 09:15

    ANC, are you still on the green paper or white paper or you have thrown the paper into the dustbin (I suppose it becomes a brown/black paper)?

  • Paul - 2012-03-14 15:33

    So implats will be doing all the work and taking all the risk for 49% of profit ....GREAT DEAL !!!

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