ZAMBIA’S state-controlled mining investor is considering a share sale to boost liquidity and meet local listing requirements, Bloomberg reported.
ZCCM Investments CEO Kakenenwa Muyangwa said the company and other shareholders could sell part of their stakes over the next year or two. The Lusaka Securities Exchange requires at least 25% of shares to be freely tradeable.
The Zambian government owns 77.5% of ZCCM, while the national pension fund holds 15%. Minority investors own the remaining 7.5%.
ZCCM holds minority stakes of between 10% and 49% in many of Zambia’s biggest copper mines, including assets operated by Vedanta Resources and First Quantum Minerals. It also has investments in electricity generation.
The potential share sale comes as record copper prices support billions of dollars of investment in Zambia, Africa’s second-largest copper producer.
ZCCM is also working to revive trading of its shares in London, where they are currently suspended because of delayed financial statements. Muyangwa said the company expected to rectify the filings within weeks.
London could play an important role in ZCCM’s growth plans because of its established market for mining investment.
The company aims to increase its market capitalisation from about $1bn currently to $7bn over the next decade, Muyangwa said.
