RioZim waived pre-emptive rights on Murowa
ZIMBABWE resources group RioZim says it gave up its pre-emptive rights to Murowa Diamonds ahead of the Midlands-based gem miner’s sale last year because it could not afford the purchase price.
Global giant Rio Tinto sold off its 78 percent stake to RZ Murowa Holdings Limited, along with its 50 percent shareholding in Sengwa Coal in June last year, but government last month said it was investigating the circumstances under which the ownership changed hands.
RZ Murowa is an investment vehicle of major RioZim shareholder, private equity firm Global Emerging Markets (GEM Holdings).
At the sale, RioZim, which controlls 22 percent of Murowa and 50 percent of Sengwa, assumed the overall management of both entities.
“The relationship between RioZim and Murowa Diamonds (Private) Limited has not changed as a result of Rio Tinto Plc’s sale of its interests in Zimbabwe last year,” said RioZim in a statement to the Zimbabwe Stock Exchange on Monday.
Reports suggested that RioZim shareholders were not offered an opportunity to exercise their pre-emptive rights over the sale of Murowa, in accordance with the shareholder’s agreement with Rio Tinto, but the local miner said it had no money to fund the purchase.