Zccm Investments Holdings Plc Regulatory News (ZCC)

Investors

ZCCM-IH, and Wonderful Group

Nature of the Business

Mining and processing of limestone into Lime, Cement, and other related products.

The project will be implemented in three distinct phases:

· Phase 1: Construction and commissioning of a lime production plant with a capacity of 600 tonnes per day.

· Phase 2: Within 12 months of Phase 1, the development of either a cement processing plant or a second lime production plant.

· Phase 3: Within 12 months of Phase 2, further expansion into cement or lime production based on market considerations

Investment Salient Features

· Financing Structure:

i. Wonderful Group Contribution:

Ø Shareholder loan (USD 5 million)

Ø Equity (USD 25 million)

ii. ZCCM-IH Equity Contribution:

Ø Facilitation of the transfer of all assets worth ZMW 36.9 million ( USD 1.92 million) from Limestone Resources Limited to Ndola Lime (2026) Company Limited.

Ø Write-off of all debt (USD 9.8 million) currently outstanding from Limestone Resources Limited.

· Shareholding structure:

Ø Wonderful Group-55%

Ø ZCCM IH-45%

Transaction Categorisation

· As of 10 April 2026, using Boz mid-rate of ZMW/US$ 19.2034

ZCCM-IH Market Cap = USD 1,421.74 million

Transaction Consideration= USD 11.65 million

· Accordingly, the percentage ratio of the consideration to the market capitalisation of ZCCM IH is 0.82%.

· In accordance with the Categorisation methodology of Section 9 of the Listings Requirements of the Lusaka Securities Exchange ("LuSE"), the Transaction is classified as a Neither Category 1 nor Category 2 Transaction.

Sources of expansion capital beyond Phase 1

· Project finance, with each shareholder contributing equity at no more than 30% of total funds required

Governance

· Both parties to have proportionate Board representation, with Wonderful Group retaining the right to nominate the Chairperson

Conditions Precedent include:

· Completion of the transfer of assets from Limestone Resources Limited to Ndola Lime (2026) Company Limited

· Competition and Consumer Protection Commission clearance

Effective Date

28 May 2026

Rationale for the Transaction

Limestone Resources Limited has faced a myriad of operational challenges since its formation, mainly as a result of unreliable plant and equipment inherited from Ndola Lime Company Limited (In Liquidation). This unreliability in production led to a substantial reduction in market share. ZCCM-IH's strategic decision will result in the installation of state-of-the-art equipment and technology which will improve productivity and long-term reliability, as evidenced by Wonderful Group's experience in establishing complex industrial operations. Further, the partnership will also result in improved market access given Wonderful Group's established regional marketing network. These factors, among many others, will lay the foundation for a sustainable long-term industrial operation that will generate value for ZCCM-IH's shareholders.

Before

Pro Forma Adjustments

After

Percentage change (%)

EPS (ZMW)

(5.30)

1.18

(4.12)

22.34%

HEPS (ZMW)

(5.31)

1.18

(4.13)

22.31%

NAV per share (ZMW)

325.47

0.91

326.38

0.28%

Ordinary Shares in issue ('000)

160,800

-

160,800

-

Shares in issue ('000)

160.800

-

160,800

-

Weighted average number of Ordinary Shares in issue ('000)

160,800

-

160,800

-

Lusaka Securities Exchange Sponsoring Broker

T | +260-211-232456

E | advisory@sbz.com.zm

W | www.sbz.com.zm

Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on 28 May 2026