eBusiness Weekly
Tawanda Musarurwa
HARARE – RichPro Investments Ltd appears to now have a free run on the acquisition of Zimbabwe-focused ASA Resource Group after South African mining group Pan African Resources pulled back on its proposed offer.
The JSE-Pan African Resources (PANAF) came into the mix with an announcement at the end of last month that it was in “exclusive talks with the joint administrators of ASA Resource Group” in relation to acquiring “certain of the assets and liabilities of ASA.”
But the mining firm has decided to terminate those negotiations.
“Shareholders are hereby notified that discussions between the company and ASA relating to the acquisition have been terminated and, accordingly, shareholders are no longer required to exercise caution when dealing in Pan African shares,” said PANAF in a statement to the JSE.
The pullout means RichPro’s non-binding offer to ASA Resource Group – which it made late last year – is the only one left on the table for the struggling mining group. It also means that there will likely be a change of guard on the ASA board and management after RichPro made clear its intentions.
“RPI reiterates its previously stated intention to seek the immediate resignation of, or procure the termination of appointments of, the current ASA board, and to investigate whether any actions taken by current or past directors of ASA are in contravention of applicable laws or regulations or their duties to ASA, including, but not limited to, the conduct of the ASA board throughout the offer period and specifically in relation to the appointment of the administrators by the ASA board,” said RichPro in an earlier announcement.
RichPro is owned by Chinese industrialist Feng Hailiang. The major concern within the current ASA board is that former ASA chairman and chief executive Yat Hoi Ning, who was ousted last year, is allegedly linked to RichPro. The current ASA board is headed by David Murangari, with Toindepi Muganyi being the interim CEO.
Ning was sacked from ASA in April last year following allegations of fraud, of figures ranging between $4 million and $15 million related to gold producer Freda-Rebecca. Also sacked was BNC chairman Yim Kwan and Freda Rebecca financial controller Roy Shum.
The ASA Resource group has been struggling to pay creditors when debts fall due, indicative of problems lying deeper than the on-going shareholder spats. Ning was appointed executive chairman of ASA Resources mid-2015 after the following the rancorous removal of founder and then CEO of Mwana Africa, Kalaa Mpinga.
ASA’s assets in Zimbabwe include Bindura Nickel Corporation, Freda Rebecca Gold Mine and an agribusiness venture. It also has copper and diamond operations in Congo and South Africa, respectively, as well another nickel mine in Botswana and a base metal exploration in the Democratic Republic of Congo (DRC).
