Zimpapers Logo

Oliver Kazunga, Senior Business Reporter
SOUTH African focused platinum miner, Lonmin Plc has entered into an agreement to sell its 50 percent stake in PetroZim Line for $14,75 million to the National Oil Infrastructure Company of Zimbabwe (Noic).

“Lonmin Plc is pleased to announce that it has today entered into a conditional sale of shares agreement to sell its 50 percent interest in PetroZim Line (Private) Limited (PetroZim) for a gross cash consideration of $14,75 million to the National Oil Infrastructure Company of Zimbabwe (Noic),” said the company in a statement.

In addition, the platinum mining concern said under the agreement, it will receive $8 million in the form of special dividends from PetroZim. The transaction forms part of Lonmin’s ongoing programme to dispose of non-core assets.

The purchase price and special dividends will be paid in cash on completion of the transaction and will be used to improve the company’s liquidity.

PetroZim, which is incorporated in Zimbabwe owns and operates the Feruka to Harare fuel pipeline and presently holds the sole and exclusive right to transport all petroleum products imported into Zimbabwe through the pipeline.

Lonmin’s interest in PetroZim has been reportedly impaired to nil and no attributable profits were recorded in the company’s report and accounts for the year ended September 30, 2017.

“The closing of the transaction is subject to various conditions precedent including approvals from Zimbabwe’s Competition and Tariff Commission, the Zimbabwe Revenue Authority, in addition to the consent of Lonmin’s lending banks.

The Standard Bank of South Africa has acted as financial advisor to Lonmin.

“Subject to fulfilment of the conditions precedent, the transaction is expected to complete in the fourth quarter of 2018,” said Lonmin.

@okazunga