The ZPA is pleased to announce the sale of Government's 50% shareholding in Agip Zambia Limited (Agip) to Agip Petroli International BV, the class B shareholders of the company following the successful completion of negotiations.
The Minister of Finance Hon. R.D.S. Penza has signed the sale agreement after receiving clearance from the Attorney General. The sale will achieve one of the ZPA's prime objectives, that of increasing investment in the country.
The deal was negotiated by Mr Mebelo Mutukwa as team chairman. The Agip Petroli team was led by Mr Gianbattista Decet, Director in charge of Agip Petroli's concerns in Africa, assisted by the then Managing Director of Agip Zambia Limited Mr Carlo Ferrari. The negotiators relied on the independent valuation conducted by Devcorp.
Agip was incorporated on 28 January, 1967 with a head office in Lusaka and a lubricant depot in Ndola. Its major business is to distribute, export, import and deal in petroleum and petroleum products of all descriptions.
The ZPA Board gave a negotiation mandate to the Agip negotiation team aimed at ensuring that the company was sold in accordance with the Articles of Association. The Articles provided for Agip Petroli to exercise their rights of preemption over the Government shares in Agip. The team was mandated to make a sale at a price to be determined by independent valuers.
Government shares in Agip Zambia were offered to Agip Petroli in August, 1995. Following extensive negotiations Agip Petroli agreed to the price demanded for the shares by the Zambia Privatisation Agency.
Government shares in Agip were sold for a price consideration of US $850,000 which has all been paid. Agip Petroli plan to increase the business activity of Agip in Zambia over the next five years.
They have also agreed to sell up to 30% of Agip Zambia's shares to the public in the near future. This will help achieve another of ZPA's objectives; to provide for wide share ownership which will help to improve earnings of the Zambians.
The ZPA is pleased with the increasing level of confidence being shown by local and international companies in the future of Zambia and hope this will go a long way in rejuvenating the growth of the economy of Zambia. Privatization is leading the investment surge and the ZPA is hopeful that this transaction will attract even more investment in Zambia.
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