PROMINENT banker and chief executive officer of Barbican Holdings Ltd (Barbican) Mthuli Ncube has made a hostile bid for a 40% stake in Zimbabwe Platinum Mines Ltd (Zimplats), a lucrative min
The offer counters that made by South African-based Impala Platinum Holdings Ltd (Implats) in June.
The current major shareholders of Zimplats are Implats (50,53%), National Nominees Ltd (8,24%), and Citicorp Nominees pty Ltd (6,73%).
In an interview yesterday Ncube said Zimplats was a “very good investment especially during these days of economic uncertainty”.
Zimplats, which is listed on the Australian Stock Exchange, is a lucrative mining venture with huge deposits of platinum and palladium in the world.
“Our bid is between zero to 40%,” Ncube said. “If minority shareholders approve of the offer we will get as much as 40% of the stake in Zimplats. If however they do not agree to the full bid we could get as low as 0%.”
As at June 30, 89 285 360 fully-paid and quoted shares were on issue at Zimplats.
As a consequence of Implats’ shareholding increasing to 50,53% following the acquisition of the shares formerly held by Absa, an arrangement with respect to the advance vesting of employee options had been reached.
Zimplats chief exe-cutive officer Roy Pitchford confirmed the Barbican offer and said more details however were needed to process the lucrative deal.
In terms of the agreement entered into on November 20 last year between Zimplats and Implats, Implats would be making an offer to minorities at Australian $4,08 per share (A$4,08).
However, Ncube said in the interview, this offer was too low.
“We believe it should be in the region of about A$5,” he said. Our offer is going through within the next few days as per regulations. We wrote to the management telling them of our intention and now we will be following up with the actual documentation.”
He said Barbican would be bidding with some international institutional investors.
“We were asked to provide details on how we would raise the required US$130 million,” he said. “This is the value of the total shares.”
Barbican made another hostile bid when it swallowed Haddon & Sly Ltd (Haddons) to list on the Zimbabwe Stock Exchange.
Most of this growth was derived from growth in investments.