HARARE- Nickel miner BNC, has said the evaluation of prospective acquirers as previously communicated through a number of cautionary statements, will be completed in a fortnight.
Addressing shareholders at the 53rd AGM in Harare on Thursday, Chairman, Muchadeyi Masunda, said the process of reviewing various bids is still ongoing.
He highlighted that Joint Administrators are evaluating various bids that have been submitted while the prospective investors are carrying our due diligence in respect of the assets owned by ASA Resources.
ASA has been in the market looking to find a potential suitor for its 75% shareholding in Bindura Nickel Corporation which has since been trading under caution.
ASA was suspended and later delisted from the LSE AIM in 2018 after significant funds were siphoned and remmited from operating subsidiaries in Zimbabwe including BNC, but not properly accounted for. The funds were diverted to ASA’s Hong Kong entities which are linked to deposed former director Yat Hoi Ning.
The diversion of funds resulted in viability challenges at the operating subsidiaries notably at BNC and Freda Rebecca, the later being a gold mining asset. BNC however said it is in a sound financial position and has emerged from the crisis.
In his address to shareholders, Chairman Masunda said the company’s operations have not been adversely affected by several reports and updates on the potential share disposal by ASA.
In recent weeks the Zimbabwe Independent carried a story highlighting that Sakunda Holdings, controlled by Kuda Tagwireyi, is behind the latest cautionary update by BNC. Sakunda is at the centre of Zimbabwe’s monetary crisis through its various dealings with government.
The cautionary released on 3 September, which is a third pertaining the potential disposal, said that ASA had entered into a Sale and Purchase agreement with a third party, which is a Zimbabwean mining company with interests in the mining of ferrous and non-ferrous metals as well as precious metals.
Although the company said its operations were not directly affected by the numerous media reports, the company’s share price has been severely bartered and shows a steep decline when adjusted for the exchange rate.
Most investors, notably institutional, are of the view that a sale to entities linked to Sakunda, would result in a delisting of the entity from the stock exchange even as commitment to the long term growth of the business will not be prioritised.
These adverse sentiments are reflected in the weakening of the company’s share price, which defies firming global prices of nickel.
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