Hyderabad: Nava Bharat (Singapore) Pte Ltd (Ashok Devineni, chairman), a subsidiary of Nava Bharat Ventures Ltd, has signed a share sale and purchase agreement (SPA) with the Zambian government through the minister of finance and Zambia Consolidated Copper Mines Investments Holding Plc (ZCCM-IH) for acquiring 65% stake in Maamba Collieries Ltd (MCL). The acquisition entails that the initial cost of acquisition of about $26 million (approximately Rs 121.68 crore) by Nava Bharat be paid upon completion.
ZCCM Investments Holdings Plc (ZCCM-IH) is a Zambia-based investments holdings company. The majority of the company’s investments are held in the copper mining sector of Zambia. In January 2008, the government of Zambia transferred its 100% stake in MCL to ZCCM-IH. As a result, ZCCM-IH controls the Maamba coal mine, which supplies coal to Mopani copper mines and Konkola copper mines in Zambia.
The acquisition was made pursuant to the selection of Nava Bharat against a global tender issued by ZCCM in late 2008 for inducting a private majority partner.
The whole process of acquisition is expected to be completed by February 2010. The SPA signed between both the entities sets out certain conditions precedent for completion of the transaction like the bankable power purchase agreement and an investment promotion and protection agreement which are critical to the proposed investment. There will be a completion audit whereby the final purchase consideration by netting the liabilities of MCL and tax assets would be ascertained.