via Govt to decide on van Hoogstraten’s Hwange offer next year – minister | The Source December 10, 2013
Government is still considering the $50 million rescue package offered to Hwange Colliery Company (HCCL) by shareholder and businessman, Nicholas van Hoogstraten and will only announce its decision next year, the mines minister said on Tuesday.
van Hoogstraten holds a 30 percent shares in Zimbabwe’s largest coal mine, the second largest after the Zimbabwe government’s 37.10 percent, and has demanded management control of the company for five years in exchange for the cash.
Hwange appointed the Infrastructure Development Bank of Zimbabwe as the lead financial advisor on the deal with a view to reaching an agreement by November 30.
“We are considering the offer and the permanent secretary is discussing with the board chairman,” Mines Minister, Walter Chidhakwa told The Source.
“Any consideration of such a matter must be exhaustive,” Chidhakwa said.
He the decision on the deal would be announced early next year.
Hwange is grappling with a $14 million six-month salary backlog and a debt of $160 million.
Under the van Hoogstraten proposal, the capital injection would be formalised and secured through the issue of convertible loan stock with a 10 percent interest rate, a conversion rate of one new $0.25c ordinary share for each $0.50c of loan stock and convertible at the end of the fourth year.
The Government’s 37 percent shareholding would be maintained while debts owed to statutory bodies will be converted into five-year preference shares at a par value of $1 and a five percent interest rate. Banks owed by the company would receive an immediate 50 percent cash payout.
Other Hwange shareholders include Mittal Steel Africa with 9.76 percent and Messina Investments with 15.09 percent.
COMMENTS
If you can ……..
Be careful not to handover the company to a white man its against the indigenisation drive, it will also show how desperate and incosistent Mugabe is with his policies.
You B Mathe which contnent do you come from. You are a very idiotic racist. Like it or not the white man is the man with the money to invest. So you want the economy to grind to a halt simply because a white man must not invest in Zim. Your racisim will never take us anywhere. So if the black man has got the money why is the country bleeding. Why can’t they invest and create jobs for those countless graduates chained out by schools and colleges. This kind of racism will never bring food on the table. Zimbabwe needs investment badly not such stupid, cheap political scores.
Where does one person get all that money to borrow a company?isnt he the same guy who wants to buy a controllng stake in air zim?
little option for gvt give the investor a chance other people want to be paid feed their families and educate their children companies are closing becoz of inde….when will this bring food water etc to zimbos