Zimplats concludes 10% equity sale under vendor financed loan structure
HARARE – Zimplats Holdings says its operating subsidiary, the Zimbabwe Platinum Mines (Private) Limited has concluded the issuance of a 10% equity stake to its Employee Share Ownership Trust.
In a statement Chief Executive Officer Alex Mhembere said the Trust acquired the 10% equity stake for $95 million which was vendor financed through a loan advanced by the company. The loan will be repaid from dividends declared by the company.
The ESOT’s beneficiaries are the permanent employees, excluding the executive directors and company secretary of the operating subsidiary.
“Zimplats wishes to announce that its operating subsidiary, Zimbabwe Platinum Mines (Private) Limited, has concluded a transaction in terms of which it has issued a 10% equity stake to the Zimplats Employee Share Ownership Trust.
“The subscription price payable by the ESOT for the 10% equity stake is $95 million which has been vendor financed through a loan advanced by the operating subsidiary to the ESOT. The ESOT will repay the loan from dividends declared by the operating subsidiary,” he said.
Mhembere said the ESOT will be beneficial to Zimplats in that it will secure and retain key skills and experience among the operating subsidiary’s employees to ensure continued long-term operational and production success.
Only yesterday, the platinum miner reported increased revenue for the quarter ended December 2016 at $139 million on the back of strong metal sales. Tonnes mined increased marginally from the previous quarter to 1, 735 million owing to sustained good operational performances across all the mines. But, tonnes milled decreased by 6% to 1, 6 million.
Local spending in Zimbabwe excluding payments to the government and related institutions for the quarter increased to $61 million from $27 million recorded in the previous.