Business
Zimbabwe: Local investors to acquire controlling stake in Impala Zimplats for $971 million
(Reuters) – Impala Platinum, the world’s second-largest platinum miner, has agreed to sell a majority stake in its Zimbabwe unit to local black investors for US$971 million to meet black ownership and empowerment targets set by the government.
The deal, which will see the Zimplats unit lend the money needed to buy the stake, is Zimbabwe’s largest local ownership transaction and a major scalp for the Mugabe administration’s black economic empowerment push.
“The transaction being concluded today is a flagship of the policy objectives of our government’s empowerment of indigenous Zimbabweans,” Saviour Kasukuwere, the minister leading the push, said at a signing ceremony.
Under the deal, Implats will transfer 51 percent of Zimplats to Zimbabwean investors as follows: 10 percent to the community, 10 percent to Zimplats employees and 31 percent to the state-controlled National Indigenization and Economic Empowerment Fund.
Zimplats will provide a loan to the new shareholders at annual interest of 10 percent. The debt is to be repaid through dividends over 10 years while management of Zimplats will remain with the company.
Implats chief executive Terence Goodlace said the company had confidence in Zimbabwe and was committed to a US$460 million expansion of Zimplats’ operations.
“I am, during these uncertain economic times, excited about the future of Zimplats and platinum mining in Zimbabwe,” he said. “The uncertainty that has dogged Zimplats during the negotiations is now hopefully a thing of the past.”
