[2007-09-17]  ZNCB shares to be floated on LuSE
ZDA preparing for floatation of ZNCB on LuSE
THE Zambia Development Agency (ZDA) is preparing documents for floatation of Zambia National Commercial Bank (ZNCB) shares on the Lusaka Stock Exchange whose listing is expected early next year.

ZDA legal secretary, Florence Mumba, said the Zambia Privatisation Trust Deed was expected to remain in force until ZNCB’s 25.8 per cent shares were disposed of.

Ms Mumba speaking in Lusaka at the just- ended Business and Economic Reporting workshop for Journalists at ZAMCOM, said the objective of the Trust had been fulfilled with the wide participation of Zambians now owning shares.

She added that the Trust is an agreement between the ministry of finance and national planning and the Trustees of the Zambia Privatisations Trust Fund (ZPTF).

The Privatisation Trust Deed constituting the ZPTF was executed on June 17, 1993 and is in force until May 31, 2008.

Ms Mumba said the Trust deed specified the duties of the trustees and manager of the ZPTF, Cavmont Bank.

She added that the Trust Deed also provided guidelines on procurement of shares for the trust fund, suitability of investment, restrictions of investments, share divestment and holding of shares.

ZPFT was established to hold shares in trust for citizens of Zambia for divestiture after selected and qualifying state owned enterprise had been privatised.

She said ZPTF’s duties include ensuring that the trust fund is professionally managed, so as to achieve the objective of increasing citizen participation in the economy.

Ms Mumba said ZPTF cannot acquire more than 30 per cent voting rights attached to shares, investment which is highly speculative, shares that would be subjected to rights of pre-emption and non-voting shares or shares with liabilities attached.

“As far as practicable, investments are to be sold directly to Zambians by way of floatation on the Lusaka Stock Exchange.

A valuation of shares is to be done prior to the floatation,’’ he said.

She added that while shares are held in trust, the manager was responsible for ensuring that assets were preserved, maximised and minority shareholders were protected but not allowed to exercise any direct management functions.

Ms Mumba said that through the privatisation programme, ZPFT has handled shares from Chilanga Cement, Zambia Sugar Company, Zambia Breweries Limited, Pamodzi Hotel Limited and BP Zambia Limited.

Other shares handled include those from African Explosives Limited (former Kafironda), National Breweries Limited and Rothmans Zambia limited.

She added that on overall, ZDA was pleased with the performance of companies listed on the stock exchange that were expanding their operations and declaring dividends for the shareholders.






Source: © 2005 Zambia Daily Mail.