ZANACO SHAREHOLDERS IN SECURITIES CAUTIONARY STATEMENT

The future of Zambia National Commercial Bank shares remains in limbo, owing the pending release of a government-directed inquiry into the partial privatisation of the bank.

ZANACO has since issued a cautionary statement over its Lusaka Stock Exchange-listed shares.

This is in light of any material effect on the share price, due to last December’s government instituted Commission of inquiry into the partial sale of the bank.

ZANACO was in 2007 partially privatised, in a transaction, in which the Dutch-based Rabo-bank bought a majority 75 % stake in then the only indigenous bank.

Rabo-bank later diluted its stake to 45.5 %, by floating a 24 % stake to the general public on the Lusaka Stock Exchange and a 3.4 % stake to the Zambia National Farmers Union. Meanwhile, ZANACO has reported a K 74 million after-tax profit for the first 6 months of this year.

This is a 32 % rise from last year’s K 56 million for the corresponding period.

In a statement, ZANACO has also reported an 82 % earnings per share reduction, which it says is due to share holding restructuring, in order for the bank to meet the new capital regulation.