ZIMBABWE’S biggest platinum miner, Zimplats, will on Friday sign terms of the Indigenisation and Implementation Plan agreed with the Zimbabwean government.
Vice President Joyce Mujuru will attend the event, a significant milestone in President Robert Mugabe’s push to dilute foreign shareholding in Zimbabwean companies.
The government has agreed in principle that the plan presented by Implats, the South Africa-registered parent company of Zimplats, is compliant with the law.
No agreement has been reached on timing nor valuation other than that the share sales would be at appropriate value.
The proposals made by Implats to the Zimbabwean government were that 10 percent of Zimplats will be issued to the Community Trust at the independent valuation previously submitted to government.
Zimplats Holdings will provide an interest free loan to the Community Trust to fund the shares and the loan will be repaid from dividends. This stake would be non-contributory.
A further 10 percent of Zimplats will be sold to an employee share ownership trust for the benefit of all fulltime employees of Zimplats. The shares will be sold at the same independent valuation and Zimplats Holdings will provide an interest bearing loan to the Employee Trust to fund the purchase of the shares. The loan will be repaid from dividends and will be contributory or dilutive.
Zimplats will make available for sale to the National Indigenisation and Economic Empowerment Fund (NIEEF) a 31 percent fully contributory stake in the company for cash at an independently determined fair value at the time.
Former Implats chief executive officer David Brown said: “The discussions were cordial and we have reiterated Zimplats' determination to comply with the laws of Zimbabwe. I believe we have found common ground and that we have a workable solution as the government understands that recognition of appropriate value is essential. We will set up the technical committees to start the discussions in due course.”
He said upon the execution of these initiatives, Zimplats would have met all of the Government's indigenisation and empowerment objectives and requirements.