Business / Companies
Name change: From Zisco to Essar
01 May 2011 at 03:07hrs | Views
It is reported that Essar Africa Holdings is expected to re brand the steelmaker to Essar Steel Zimbabwe and appoint a new board, including a chairperson and chief executive officer in 2011.
The Mauritian based company in March 2011 signed three legal agreements with government, a shareholder agreement that gave it control of 54% of ZISCO, a strategic partnership agreement that gave it the right to restructure Africa's sole integrated steelmaker and an investment agreement that set terms for the restart program.
Mr Nyasha Makuvise CEO of banking group CBZ Holdings currently chairs the ZISCO board. He is tipped to remain on the ZISCO board to represent government's residual interest.
In terms of its strategic partnership agreement, Essar Africa Holdings has the right to appoint about 54% of the ZISCO board of directors and to restructure the company's management and staff to suit its strategic plan.
The agreement said that "The board of ZISCO shall be appointed by shareholders. The composition of the board of directors shall at all times reflect the shareholding structure of the company."
It added that "Essar shall retain as much as possible of the current ZISCO staff. In selection of new staff, Essar shall consider existing staff of ZISCO, subject to the qualifications, knowledge, skills, experience, and personal merit of staff."
The sell off diluted government's shareholding in the steelmaker to 35.6%, but left untouched minority interests held by Louth Mineral South Africa (3%), Tonexon Investments (2.79%), Lancashire Steel (1.76%), Stewards & Lloyds (1.76%), Franconian Investments (0.81%), Amzim Iron & Steel Limited (0.75%) and Zambia Copperbelt Investment (0.13%).
Essar is understood to have submitted a ZISCO business plan to government for review, and is awaiting official authorization to proceed with the restart program under which the steelmaker will be re branded and its board and management restructured.
The re branding also extends to the Buchwa Iron Mining Company in which Essar has acquired an 80% equity interest through a JV mining company it is setting up with government, which has been diluted to 20%.
BIMCO's iron ore reserves are estimated at 25,135 billion tonnes, 135 million tonnes in Redcliff and 25 billion, excluding claims, at Mwanezi near Chivhu.
Under the strategic partnership agreement, Essar agreed to include in its turnaround plan for ZISCO, the relining of blast furnaces, repairs and rebuilds of coke oven batteries, relining of lime kiln, repairs of coke oven gas holder, the supply of shunting locomotives and coal ovens, among others.
The Mauritian based company in March 2011 signed three legal agreements with government, a shareholder agreement that gave it control of 54% of ZISCO, a strategic partnership agreement that gave it the right to restructure Africa's sole integrated steelmaker and an investment agreement that set terms for the restart program.
Mr Nyasha Makuvise CEO of banking group CBZ Holdings currently chairs the ZISCO board. He is tipped to remain on the ZISCO board to represent government's residual interest.
In terms of its strategic partnership agreement, Essar Africa Holdings has the right to appoint about 54% of the ZISCO board of directors and to restructure the company's management and staff to suit its strategic plan.
The agreement said that "The board of ZISCO shall be appointed by shareholders. The composition of the board of directors shall at all times reflect the shareholding structure of the company."
The sell off diluted government's shareholding in the steelmaker to 35.6%, but left untouched minority interests held by Louth Mineral South Africa (3%), Tonexon Investments (2.79%), Lancashire Steel (1.76%), Stewards & Lloyds (1.76%), Franconian Investments (0.81%), Amzim Iron & Steel Limited (0.75%) and Zambia Copperbelt Investment (0.13%).
Essar is understood to have submitted a ZISCO business plan to government for review, and is awaiting official authorization to proceed with the restart program under which the steelmaker will be re branded and its board and management restructured.
The re branding also extends to the Buchwa Iron Mining Company in which Essar has acquired an 80% equity interest through a JV mining company it is setting up with government, which has been diluted to 20%.
BIMCO's iron ore reserves are estimated at 25,135 billion tonnes, 135 million tonnes in Redcliff and 25 billion, excluding claims, at Mwanezi near Chivhu.
Under the strategic partnership agreement, Essar agreed to include in its turnaround plan for ZISCO, the relining of blast furnaces, repairs and rebuilds of coke oven batteries, relining of lime kiln, repairs of coke oven gas holder, the supply of shunting locomotives and coal ovens, among others.
Source - Byo24News
