BNC disposes majority stake

Published: 04 October 2019

AN unnamed local investor has snapped up majority shareholding amounting to 74,73 percent at Bindura Nickel Corporation (BNC) through a sale and purchase agreement.

BNC company secretary, Mr Muchadeyi Masunda, announced the development in a cautionary statement to shareholders.

"Shareholders are referred to the cautionary statement published on September 3, 2019 advising that the ultimate holding company of BNC, Asa Resource Group Plc (currently under administration), has entered into a sale and purchase agreement with a third party in relation to the 74,73 percent shareholding in BNC," he said.

Asa Resource Group was placed under administration in 2017 following shareholder wrangles that also involved charges of financial impropriety and externalisation. As a result of the above issues, the mining group was suspended from the London Stock Exchange in January last year.

Mr Masunda said the third party involved in the sale and purchase agreement is a local miner but would not disclose the details. "The third party is a Zimbabwean-based mining entity with interests in the mining and production of ferrous metals, non-ferrous metals and precious metals.

"The envisaged transaction may have a material effect on the price of the company's securities.

"Accordingly, shareholders are advised to continue to exercise caution when dealing in the company's securities until a full announcement is made," he said.

Meanwhile, during the financial year ended March 31, 2019, BNC realised a profit after tax of US$13,5 million compared to US$5,8 million recorded in the prior year.

Founded in 1966, BNC is a subsidiary of Zimnick Limited, operated and majority-owned by Mwana Africa plc, an African multi-national mining company based in Johannesburg, South Africa.
- chronicle

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