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Zimplats sells 10% equity to employees

Feb 01 2017 18:02

Harare – Zimplats Holdings announced its operating subsidiary, the Zimbabwe Platinum Mines, has sold a 10% equity stake valued at $95m to its employees.
 
In a statement released on Wednesday, chief executive officer Alex Mhembere said the 10% equity stake, to the company’s Employee Share Ownership Trust (ESOT), was vendor financed through a loan advanced by the company. The loan will be repaid from dividends declared by the company.

Mhembere said the ESOT, which is made up of permanent employees, excluding the executive directors and company secretary of the operating subsidiary, will repay the loan from dividends declared by the operating subsidiary.
 
“The subscription price payable by the ESOT for the 10% equity stake is $95m which has been vendor financed through a loan advanced by the operating subsidiary to the ESOT," said Mhembere.

Mhembere said the ESOT will be beneficial to Zimplats in that it will secure and retain key skills and experience among the operating subsidiary’s employees to ensure continued long-term operational and production success.

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