Zci Limited - Proposed Acquisition Of Assets Of Messina Copper (botswana) (pty) Ltd (in Liquidation) By Leboam Holdings (pty) Ltd
Release Date: 22/11/2016 14:00:00 Code(s): ZCI [Email this JSE Sens Item to a Friend] [Printer Friendly Version]
Proposed Acquisition of Assets of Messina Copper (Botswana) (Pty) Ltd (in liquidation) by Leboam Holdings (Pty) Ltd
(Bermudian registration number 661:1969
(South African registration number 1970/000023/10)
JSE share code: ZCI ISIN: BMG9887P1068
Euronext share code: BMG9887P1068
("ZCI" or "the Company" or the Group)
PROPOSED ACQUISITION OF ASSETS OF MESSINA COPPER (BOTSWANA) (PTY) LTD (IN
LIQUIDATION) BY LEBOAM HOLDINGS (PTY) LTD
Shareholders are referred to the cautionary announcement by ZCI on 2 August 2016, wherein shareholders
were advised that a second meeting of creditors of Messina Copper (Bostwana) (Pty) Ltd (in liquidation)
(Messina) was held on 28 July 2016, where it was resolved that the Messina Liquidator be authorised to
accept an offer in respect of the disposal of the assets of Messina (the Offer), subject to agreement to the
suspensive conditions to the Offer being met by 28 October 2016, as well as the approval of the Messina
Liquidators report tabled at the meeting. Shareholders are further referred to the cautionary announcement
on 14 November 2016 wherein shareholders were advised that negotiations by the Messina Liquidator with
the preferred bidder were in progress and that the longstop date for the satisfaction of the suspensive
conditions relating to the Offer had been extended by the Master of the High Court until 30 November 2016
and it was ZCIs expectation that the Messina Liquidator would report to Messinas creditors once the Offer
terms had been finalised and suspensive conditions had been met.
ZCI wishes to advise shareholders that the Messina Liquidator has received a proposal from the preferred
bidder, Leboam Holdings (Pty) Ltd (Leboam) to acquire the Messina assets. Leboam, the acquiring
enterprise, is an entity registered under the Laws of Botswana and is wholly owned by Cradle Arc
Investments (Pty) Ltd (Cradle Arc). Cradle Arc is a newly registered entity under the Laws of Botswana,
established for the purposes of this transaction. Cradle Arc is, currently, wholly owned by PenMin (Pty) Ltd
(PenMin), an entity incorporated in accordance with the Laws of South Africa. PenMin is an entity that
offers mining, infrastructure and construction business solutions. With effect from the acquisition effective
date, ZCI will become a shareholder in Leboam.
The acquisition of the Messina assets by Leboam will be subject to certain suspensive conditions to the Offer
being satisfied including approval by the Competition Authority of Botswana, in accordance with section
56(1) of the Competition Act under which a merger notification will shortly be published.
The Company will provide updates to stakeholders as and when further information becomes available.
22 November 2016
Sponsor: Bridge Capital Advisors (Pty) Ltd
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Up to eight suitors are conducting due diligence into African Coppers suspended mines, Mowana and Thakadu, with a view to possibly making formal bids, BusinessWeek has established.
By Mbongeni Mguni Fri 10 Jun 2016, 12:55 pm (GMT +2)
African Copper shut Thakadu and Mowana in May and November last year respectively citing end of life and associated costs as well as plummeting prices of copper.
In April, liquidators involved in the disposal of the operations said at least three bidders had expressed interest in taking up the mines.
PricewaterhouseCoopers managing director, Butler Phiri said about eight bidders were in the running to take over the mine.
We are in the due diligence process at the moment where the potential bidders are accessing data on the mines in respect of geology, the extent of the ore reserves, quality of the plant and others, he told BusinessWeek. That will inform their decision to bid for a purchase.
It is understood the bidders include mining companies in Botswana, in the region and internationally. Phiri said the due diligence process for potential bidders would end on June 30, 2016 before matters proceed rapidly to a conclusion.
Potential bidders will have to make
their formal bids by July 7, ahead of a creditors meeting, where formal offers will be tabled for consideration.
My plan is to call a creditors meeting by July 28 in which I expect that the liquidation accounts will be laid before the Master (of the High Court) and creditors, Phiri said.
Thats when I expect that the liquidation process will be substantially ended, he added.
Last year, creditors pushed for Mowana to be placed under liquidation, in order to squeeze out payments from African Copper running into hundreds of millions of pula.
Diesel Power Mining Services, which signed a P1.2 billion contract for mining works at Mowana in 2014, led the creditors charge, demanding settlement of a P47 million debt.
African Copper is also heavily indebted to its major shareholder, ZCI Limited, as well as local banks.
At least 500 workers were retrenched after Mowana closed in April, with hundreds more having been axed after Thakadus closure.
I dare say none of us PI s are in profit, and there no point in selling now, its just hope for the best in these situations, I feel we will screwed long term, it seems to the trend these days to cancel shares, I now hold three.
It is my understanding that if ZCI buy out the ACU shareholders then they are obliged to pay fair market value.
Not looked at these for a long time but the FMV is significantly more than current SP so it is better for them to leave the ACU shareholders alone and bore them into selling.....this way they can mop them up at todays price and not FMV.
Anyone who sells now is missing the opportunity .....just let them lie if you can afford to.
Does anyone know is ZCI in trouble, if they are all right for the future then we might just get something for our shares, considering we only hold a lot less than £1 M , i would be happy with a valuation of say £1/2 M, this might make it easier for ZCI to hold all the equity in ACU to clear this mess up, it didn't make any financial sense to be listed on any SE because of the extremely small volumes that were being traded, any thoughts anyone ?
It is estimated that over 90% of AIM stocks are INFECTED by short-sellers !
# IF you were a short-seller, BLUFFING, (basically manipulating a shares' price) about a company's overvalued share price, you might not want to *draw attention to yourself since you could get accused of stock manipulation. So you would hope (OR PLAN FOR) others to get involved and to present SEEMINGLY GOOD REASONS to short the stock.
You would want to put AS MUCH FEAR INTO 'LONGS' as possible and would use high volume short trading as well as buying to drive the share price down as low as you can and as long as you can. You really want the longs to fold and to get out of the game. If you are consistently seeing sellers overwhelming buyers driving a share price down as a stock seems to be going up, I can assure you it's probably shorts' selling, since longs are totally motivated to sell their shares at the highest possible selling price. #
IT is easier to tank a share price, rather than make it go UP, by short-selling.
RUINOUS to genuine investors.
They may be able to buy in cheap BUT what's the good, if the stock never really recovers?
AND when they have got you all hooked on the 'lovely' new all-time LOW.....They'll SHORT IT AGAIN !
# ChalieHarper - posted on iii
IF a fund owns a large share holding in a firm and is long.... whilst waiting for its end game to materialise, it loans out any number of its shares to a shorter...the shorter then manipulate the share price down making £X amount when short ended.... the shorter then gives the loaned shares back and splits the proceeds 50/50.
They both make cash, probably during a time when not much is happening with the sp. IT's a WIN-WIN for them but BAD news for the pi's who as usual may have sold at a loss because the cash has to come from somewhere. #
# Axo posted on iii...
These are the kind of people that Winnifreth & Co like to associate with. They aren't helping anyone, and they're a part of a growing awful trend where large short positions open a number of weeks BEFORE a DAMNING REPORT is revealed that completely tanks an SP well before the article could even be reasonably digested.
I would posit that Gotham City research hold even less credibility than Edelman, and yet their research note was apparently convincing enough to knock 50% off the QPP SP in under one hour.
No-one of any note would have stumbled across their 74 page smear. Why would they? It was Gotham's 6th piece of research (term used very loosely) and absolutely no-one I have spoken to had ever heard of them. As such, they held zero credibility and had no natural exposure. It was disseminated beforehand with exacting purpose. #
Momentum is gathering pace and this campaign is moving faster than was ever anticipated !
Thanks to all of you that voted and POSTED over the link/s.
# The fact that these e-petitions require 100,000 signatures is not so important. THAT figure is required in order to get the GOVERNMENT to take ACTION!
Our aim is for the FCA to ACT and we believe THEY WILL do so, on LESS votes required by GOVT. We can expect votes only from the financial fraternity. Other e-petition campaigns DRAW votes from the WHOLE population !
12,000 votes is possible and that is our TARGET !
MP and adviser to the GOVT on banking, Davide Serra is lobbying Parliament to ACT ! http://goo.gl/5ZvXAU
HE wants ACTION by the FCA to do SOMETHING !
This campaign could be a useful lever for him to put pressure on the Govt to intervene and either make a ruling themselves, or put pressure on the FCA.
IF the FCA does nothing at all, then in time AIM could be affected badly as investors sell up FOR GOOD?
Market makers `hold` a certain amount of stock but only a calculated % because they don't want to be over exposed in case things get ugly, don't forget, they make their money mostly on the spread...not buying 100`s of millions low and selling them high, so the more transactions they can complete the more they make!
As part of this ZCI disclosure, ZCI cited that it currently has one major investment being
the debt and equity held in African Copper. This lack of diversity in the investment
portfolio of ZCI was reported as one of the key risks facing ZCI and that the ZCI board is
pursuing all relevant opportunities to unlock value and put ZCI in a position to build a
more diversified investment portfolio. ZCI reported it has embarked on a process to obtain
commercial and legal assistance and advice with a view to the potential restructuring of
the ZCI Group. The options being considered by ZCI include, but are not limited to,
delisting ZCI; delisting ACU; reducing the number of subsidiary entities in the ZCI Group;
restructuring the debt and capital structure of the group; and may include other
considerations of cost and fiscal effectiveness, strategy, risk and broad commercial
Home::Alliance News::African Copper Says Mowana Production Rate Jumps After Plant Alliance News
African Copper Says Mowana Production Rate Jumps After Plant Work
Tue, 11th Feb 2014 09:57
LONDON (Alliance News) - African Copper PLC Tuesday said work it completed during a planned shutdown at its Mowana Mine in November has led to higher grades and increasing production.
The AIM-listed copper production and exploration company, with operations in Botswana, said its copper-concentrate production for its third quarter ending December 31, 2013, fell to 2,499 metric tonnes from 2,577 metric tonnes in the same period the previous year.
The company said the main reason for the decline was plant throughput being reduced in November by a planned, 10-day shutdown to replace the girth gear and mill pinion, in order to improve the efficiency of the Mowana mine.
African Copper said work was completed successfully on time and within budget, and there has already been a marked increase in production and grades.
In December and January, the company produced 1,124 metric tonnes of copper concentrate each month, after producing just 632 metric tonnes in October and 743 metric tonnes in November.
Milling throughput increased from 67,619 metric tonnes in November to 83,920 metric tonnes in December and average grades increased from 1.21% copper in November to 2.02% copper in January.
However, the company noted that heavy rains experienced in January over the ore transport route from Thakadu to Mowana hurt January production levels.
African Copper shares were up 39% to 1.08 pence, making it the top AIM gainer Tuesday.
It is stupid to sell now at such low low price.
Even in case of take over by ZCI, ZCI will have to give us the NAVPS which far higher than the present market price and don't forget that prior to such take over, ZCI still have the project of selling ACU or finding a JV partner for Matsitama.
Read ZCI's H1 report of yesterday.
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