ZCCM-IH Weighs Cash Offer For Small Shareholders As Listing Review Advances

ZCCM Investments Holdings Plc is considering a cash offer to shareholders holding 100 or fewer shares, as part of a wider review of its listings on the Lusaka Securities Exchange, Euronext Access Paris and the London Stock Exchange.

The proposed Odd-Lot Offer sits within the Listing Optimisation Project, first announced on 10 July and followed by a cautionary announcement on 28 August.

The numbers explain the logic. As at 20 July, ZCCM-IH had roughly 5,013 shareholders across its three registers. Of those, 3,637, or 72.55 per cent, held 100 shares or fewer, yet together they accounted for around 0.05 per cent of shares in issue. Almost three quarters of the register, in other words, represents a rounding error of the equity while carrying a full share of the administrative and compliance cost.

Chief Executive Kakenenwa Muyangwa framed the offer as a practical remedy rather than a clear out.

"This is about making ZCCM-IH simpler, more efficient and easier to invest in," he said. "Almost three quarters of our shareholders hold 100 shares or fewer, and every one of them matters to us. For holdings of this size, however, the costs and practical considerations associated with selling through the market can be disproportionate to the value of the investment."

Eligible holders would choose between selling to the Company for cash or keeping their shares. Nobody is compelled to sell.

The offer requires legal, regulatory and shareholder approval. A circular setting out the offer price, eligibility and process will follow ahead of any general meeting.