Pursuant to the debt to equity conversion announcement by Starafrica Corporation Limited (”Starafrica”) on 19 April 2018, Shareholders are hereby advised that the Zimbabwe Asset Management Corporation (Private) Limited (“ZAMCO”) has now assumed control of Starafrica. Following the conversion of its preference shares at a conversion price of US$0.0125 per share, ZAMCO is now the beneficial owner of 58.34% of the ordinary issued share capital of Starafrica.
Paragraph 3 of the Zimbabwe Stock Exchange (“ZSE”) Listing Requirements places an obligation on ZAMCO to extend an offer to purchase shares from the holders of the remaining Starafrica equity share capital on terms that are at least similar to the conversion terms, i.e. at a price US$0.0125 per share or more. To this end ZAMCO applied for, and were granted, a 12 month waiver by ZSE on the following conditions:
a) The waiver is valid for a period of 12 months to allow ZAMCO to dispose of the excess shareholding to another party/parties; and
b) ZAMCO will immediately sell on the market a portion of ZAMCO’s shareholding in Starafrica if the share price reaches US$0.03, so as to reduce its shareholding to less than 35%.