BUSINESS REPORTER
ASA Resources has completed its exit from Bindura Nickel Corporation (BNC) after selling a block of shares on the Zimbabwe Stock Exchange (ZSE) on Tuesday to a local company in a transaction valued at ZWL$3.429bn.
BNC’s 926775700 shares exchanged hands at ZWL$3.7per share.
The transaction, which was handled by Akribos, pushed daily turnover to ZWL$3,436,143,199.16.
“Shares which exchanged hands are about 75% of issued share capital. If you check it means shares sold are from Zimmick Limited (700,036,240), Mwana Africa Holding (194,658,696) and Asa Resources Group Plc (31,666,667) which adds up to about 926m.
All those belong to ASA and were reportedly acquired by Zimbabwean based company some months ago. This is just formal transfer of shares on the stock market to a Zimbabwean based company,” a market analyst told Business Times.
In December, BNC board chairman Muchadeyi Masunda said ASA Resources Group had disposed of its entire 74.73% shareholding in the nickel miner to a Zimbabwean based mining concern.
He did not reveal the identity of the company that snapped ASA Resources’ shareholdings saying it would be “unveiled soon”.
“… after several cautionary announcements concerning the numerous efforts by the joint administrators of Asa Resources Group to dispose Asa’s shareholding of 74.73% in the company, a sale and purchase was finally concluded.
The new shareholders are going through all the necessary regulatory procedures, after which a final announcement will be made soon,” Masunda said then.
It is understood that the Zimbabwean based company—which is linked to an acquisitive but reclusive businessman—has interests in the mining and production of ferrous metals, non-ferrous metals and precious metals.
In its financial results for the year ended March 31, 2020, BNC’s turnover declined 1% to US$52.4m in the period under review from US$54m realised in comparative prior year despite an improved global price performance.
BNC’s operating profit decreased 86% to US$2.8m, compared to US$20.2m achievement in the same period in 2019.
Masunda attributed the profit erosion to reduction in the net foreign exchange gains recognised on the introduction of the Zimbabwe dollar in the prior year amounting to US$17m compared to US$0.5m realised in the year under review.
BNC, however, was back in the black after achieving a net profit of US$900,000 during the period under review from a loss of US$253m in prior comparative period.
ASA’s exits BNC, five years after it gained control of the nickel miner following a hostile takeover by China International Mining Group Corporation.
The takeover saw businessman Kalaa Mpinga losing control following the acquisition of 53% of the assets by Kalaa Mpinga’s Mwana Africa in 2004.
ASA gained control of 74.3% in BNC and 85% in Freda Rebecca gold mine.
But claims of fraud and externalisation soon crippled ASA.
In 2017, warrants of arrest were issued on chief executive Yat Hoi Ning and financial director Yim Kwan over allegations that they had illegally shipped out ore and stolen US$4.3m from the company
