Zccm Investments Holdings Plc Regulatory News (ZCC)

Introduction

In compliance with the Listing Rules of the Lusaka Stock Exchange (LuSE), shareholders are referred to the Market Update Announcement of 28 March 2014 in which ZCCM-IH informed shareholders that the recapitalization of ZCCM-IH as declared in the Extraordinary General Meeting (EGM) Circular to Shareholders dated 24 January 2014 ("the EGM Circular") was realised through the signing of a Debt Settlement Agreement between ZCCM-IH and the Government of the Republic of Zambia ("GRZ") on 25 March 2014.

 As stated in the EGM Circular the recapitalization has been implemented by way of a renounceable Claw Back Rights Offer (the "Rights Offer"). The recapitalization involves the issuance of new ordinary shares made up of Class A and Class B shares. GRZ has subscribed for all the Class A shares and part of Class B shares as per its entitlement, thereby maintaining its 87.53% shareholding, while the balance of the Class B shares representing 12.47% have been subscribed for by the National Pension Scheme ("NAPSA") in an underwriting capacity on a claw back basis.

Accordingly, minority shareholders must now participate in the recapitalization of ZCCM-IH by subscribing for their new shares on a claw back basis within their total entitlement of 12.47% of the new shares.

Purpose of Rights Offer

The primary purpose of the Rights Offer is the recapitalization of ZCCM-IH in order to strengthen the Company's balance sheet in the immediate term and unlock value for the benefit of all shareholders going forward.

Declaration of Rights Offer Record Date

Shareholders are advised that the last day to qualify for the ZCCM-IH renounceable Rights Offer (the Record Date) is Friday 09 May 2014. Shareholders who will qualify to participate shall be entitled to purchase the new shares in the Company on terms and conditions to be specified in the Finalisation Announcement and detailed in the Rights Offer Circular to be posted to all shareholders on the register as at Record Date.

· Investors on the Marche Libre Paris (France) are advised that the last day for trading in ZCCM-IH shares in order to qualify to participate in the Rights Offer is 25th April 2014.

· The LuSE in Zambia operates a 3 day rolling settlement cycle (T+3). As such, the last day for trading in ZCCM-IH shares in order to qualify to participate in the Rights Offer on the LuSE is Tuesday 06 May 2014. 

Finalisation Announcement

The Finalisation Announcement explaining the salient terms of the Rights Offer will be published in the press on Wednesday 16 April 2014.

Posting of Rights Offer Circular

A Circular to shareholders giving full details of the Rights Offer will be mailed to shareholders on or about Monday, 12 May 2014.

REGULATORY APPROVAL

The dates declared above are subject to regulatory approval and the market will be advised if there are any changes.

Lusaka

Date: 11 April 2014

[MEMBER OF THE LuSE and REGULATED BY THE SECURITIES AND EXCHANGE COMMISSION OF ZAMBIA]