Lusaka, Zambia; 28th February 1997: The Chief Executive of the Zambia Privatisation Agency, Mr. Valentine Chitalu and Chairman of the Zambia Consolidated Copper Mines, Mr. Luke Mwananshiku announced that a total of 26 bids had been received for the nine (9) packages of assets that are currently being offered for sale by ZCCM as part of its on-going privatisation.
Bids for one or more of the asset packages were received from 15 companies or bidding groups and a list of these is attached. One or more proposals were received for each of the packages on offer.
Each of the international mining companies and consortia that have submitted bids had already pre-qualified for the bidding process, to establish that they have suitable management experience and financial capabilities to develop and run the businesses.
The bids will now be evaluated by ZPA, ZCCM and their advisors Clifford Chance and N M Rothschild and Sons, and the preferred bidder for each package will be announced as soon as possible.
It is anticipated that it will take at least four weeks for the bids to be analysed, in order for the preferred bidders to be identified, and negotiations to begin with a view to completing the sales as soon as possible. Ultimately the final decisions on the winning bidders of the major asset packages will be the subject of approval by both the Cabinet and international lenders to ZCCM.
Any of the ZCCM packages or parts of these packages that are not sold will either be immediately re-tendered or transferred to a specially formed company to be managed until the assets can be disposed of at a later date.
Each of the packages comprises a parcel of ZCCM's assets which will be transferred into a newly formed company. The majority interest in each of these new companies has been offered to bidders, with residual interests remaining as part of ZCCM.
It is intended that shares in ZCCM will be sold to Zambian investors in order to promote GRZ objective of a wider share ownership democracy in a second stage of the privatisation of ZCCM, expected to take place later this year or early next year.
In addition to the assets offered in this tender, ZCCM has recently signed an agreement to dispose of a majority stake in the Kansanshi mine (to Cyprus Amax) and has signed a Memorandum of Understanding with a consortium consisting of Anglo American Corporation, Gencor and Falconbridge in relation to the Konkola Mine and the Mufulira Smelter and Refinery.
Commenting on the bids Mr Valentine Chitalu, Chief Executive of the Zambia Privatisation Agency:
"The level of international interest in this privatisation and the quality of the companies involved reflects a high level of optimism for the future of Zambia's mining industry. The vital new investment that ZCCM's privatisation will bring to finance the development of the industry will secure the future of Zambia's mines, their workforce and the community as a whole."
For further information please contact:
| Contact Person | Telephone |
|---|---|
| Valentine Chitalu, Chief Executive, Zambia Privatisation Agency | 260 1 223 859 |
| Luke Mwananshiku, Chairman, ZCCM | 260 1 229 115 |
| Pius Maambo, Director Corporate Planning and Corporate Affairs, ZCCM | 260 2 749 003 |
| Charles Mercey, N M Rothschild & Sons Limited | 44 171 280 5000 |
| Byron Ousey / Gerald Gradwell, Gavin Anderson & Company | 44 171 457 23445 |
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