Sale of ZamCargo Holdings Limited (ZamCargo) Press Release

The Zambia Privatization Agency (ZPA) is pleased to announce that the Minister of Finance Honourable R D S Penza has signed the Sale Agreement with Andrew Patrick Musonda, James Davies Chilambwe, Frederick Mpangala, David Terry Mubanga, Francis Maseko, Helen Banda Kalumba and Inter-trek Limited for the sale of 100% shares in ZamCargo Holdings Limited (ZamCargo).

ZamCargo is one of the largest clearing and forwarding companies in Zambia providing air, sea and surface freight services. It is a wholly owned subsidiary of Zambia Consolidated Copper Mines Limited (ZCCM). ZamCargo has three subsidiaries, namely: ZamCargo Zambia Limited with a branch in Tanzania, ZamCargo Limited in the United Kingdom, ZamCargo Limited in South Africa.

The Members of the Agency and Cabinet had approved that ZamCargo Holdings Limited be sold on a competitive bid basis.

ZamCargo was extensively advertised for sale in two instances. The first advertisement received a response of five bids from Kuraa Shipping Company Limited, Lennox Associates, Finsbury Investments Limited, Captain Mundwe Godfrey Mulundika and Corporate International.

The ZPA Secretariat evaluated and rejected the bids from Finsbury Investments Limited, Captain Mundwe Godfrey Mulundika and Corporate International. Negotiations were commenced with Kuraa Shipping Company Limited and Lennox Associates but failed.

The second advertisement received a response of three bids from the Management Buy-Out Team lead by Mr Frederick Mpangala and Obi Group, the Management Buy-Out Team lead by Harold Reid and Global Freight, and Corporate International.
The Management Buy Out Team lead by Fredrick Mpangala substituted Obi Group for Inter-Trek Limited before the process of negotiations commenced. Negotiations were carried out with the top two bidders, the Management Buy-Out Team lead by Fredrick Mpangala and Inter-Trek Limted, and Corporate International. Negotiations were successfully concluded with Management Buy-Out Team lead by Fredrick Mpangala and Inter-Trek Limited.

Mr Fredrick Mpangala is currently Manager Human Resources. Mr Mpangala has held various senior positions in ZCCM and Bank of Zambia. The other management team members are:

Inter-Trek Limited was incorporated as a Limited liability company on 6 May 1996 to implement the acquisition of ZamCargo. The shareholding of Inter-Trek is made up of the following Zambians: Crushin Yusuf, Tariq Mohammed Yusuf, Tasneem Yusuf, Shamil Yusuf and Pengani H Yangailo.

The Management Buy-Out Team and Inter-Trek Limited have purchased 100% of the shares in ZamCargo for a total consideration of US$3,899,500.

This consideration comprises:
 

US$
Cash payment for the 100% shares 522,500
Capital expenditure investments  3,365,000
Total liabilities taken over 12,000
Total investment package 3,899,500
The cash proceeds from the 100% sale of shares will flow in two stages as follows: 69% on signing the sale agreement and the balance on completion expected within ninety days. The capital investment programme will be carried out over a period of three years.

The Management Buy-Out Team and Inter-Trek Limited have undertaken that they will implement a manpower policy that will ensure that employee development programmes are put in place as stated in the business plan.

The transaction was negotiated by an independent negotiating team composed of Mr Norman Mbazima a Partner at Deloitte & Touche as the Team Chairman and Mr Bevin Willombe of MMW & Company as the Team Lawyer, both personalities of high integrity appointed by the ZPA Board.

The acquisition by Management Buy-Out Team and Inter-Trek Limited, of ZamCargo is a significant demonstration that Zambians are very keen to continue supporting the Zambian privatisation programme through their continued investment activities.

Back to Zambia Privatisation Agency (Zpa) Home Page | Back to Press Releases Menu