Mining Weekly reports this morning that the Competition Commission have delayed Vedanta's controversial plans to purchase ZCI shares in Konkola Copper Mines. The story below suggests that the delays are purely procedural, yet the situation has been highly political and subject to complaints from both shareholders and concerns from nationalist-oriented politicians in Zambia.ZCI's official note is here.
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Indian miner Vedanta's acquisition of the 28,4% of Konkola Copper Mines (KCM) shares held by JSE-listed Zambia Copper Investments (ZCI) has been delayed, after the Zambian Competition Commission said that it would exercise jurisdiction over the transaction, ZCI reported on Thursday.
The regulator had withdrawn an interim authorisation granted earlier to Vedanta.
As a result, ZCI had not yet received payment for the Konkola shares, which it still held, the company said.
ZCI and KCM have been entangled in a series of legal processes, to resolve a dispute over a call option on ZCI's shares in KCM.
Finally, Vedanta said last month that it would accept an independent investment bank’s valuation of the stake, at $213,15-million.
The companies said on February 14 that Vedanta had agreed to complete the payment within a week and that ZCI would then transfer the shares to the Indian firm.
ZCI said on Thursday it had been assured by both KCM and Vedanta that the competition authority's concerns were “purely procedural” and would likely be resolved soon.
The companies were confident that approval would be received for the transaction, ZCI said in a statement.
ZCI said in February that the board planned to present shareholders with proposals regarding the future of the company, including whether it should be wounded up and its assets distributed to shareholders, or whether it should continue as an investment or operating vehicle.
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