Zim prepares law to seize company stakes without paying
Bloomberg|
22 April 2013 14:18
Zimbabwe’s government is preparing a law that would allow it to seize
controlling stakes in companies without compensation, according to a draft
of the legislation obtained by Bloomberg News.
The law would be an amendment to a 2007 act that compels foreign and
white-owned companies such as Rio Tinto Group, Sinosteel Corp. and Impala
Platinum Holding Ltd. to sell or cede 51% of their shares to black nationals
or state-approved agencies.
“The motivation for this position arises out of the desire to ensure that
the people of Zimbabwe benefit fully, and without cost whatsoever, from
enterprises that exploit their God-given natural resources,” according to
the draft law.
Zimbabwe, which has the world’s second-biggest platinum and chrome reserves,
endorsed a new constitution in a referendum last month, paving the way for
elections, which must be held before Oct. 31.
Anglo American Platinum Ltd. and Impala have agreed to cede stakes in their
local units. The government is in talks with banks including Barclays Plc
and Standard Chartered Plc about their compliance with the current local
ownership law.