JOHANNESBURG -- South African-based miner Lonmin on Wednesday urged Ghana to relax restrictions on foreigners in Ghanaian companies, saying it depressed share prices of firms like Ashanti Goldfields Co Ltd.
Lonmin Platinum Managing Director Peter Ledger told reporters a cap of 20 percent ownership by foreigners in Ghanaian companies curbed vital foreign direct investment.
"They (Ghanaian government) have played a role in preventing the Ashanti share price to move (upwards)," Ledger said, adding: "No foreigners can own any more than 20 percent in a Ghanaian company and that is keeping off many investors.
"We hope they will look at those restrictions with a view to relaxing them. The current government appears to be more willing to deal with these issues."
Lonmin owns near 30 percent interest in Ghanaian miner Ashanti Goldfields . Ledger reiterated Lonmin's commitment to divest from Ashanti when it achieved a fair price.
Lonmin shareholding in Ashanti is significantly above the government cap because it was acquired prior to imposition of what Lonmin executives saw as unfriendly restrictions.
The restrictions were imposed a few years ago in what the government said was a move to promote Ghanaian ownership of their own enterprises.
Ashanti shares have oscillated from a high of $6.50 to a low of $3.20 and currently trade at around $5.20, which analysts say is gross undervaluation.
Lonmin is the world's third-biggest listed platinum miner and makes most of its income from platinum mines in South Africa. It was formed by the demerger of late entrepreneur Tiny Rowland's pan-African Lonrho empire.
Ledger said Lonmin's stake in Ashanti was given as $275 million in its books. "Our stake, given the share price, should more than realise that," he told the Johannesburg briefing.
JOHANNESBURG -- South African-based miner Lonmin on Wednesday urged Ghana to relax restrictions on foreigners in Ghanaian companies, saying it depressed share prices of firms like Ashanti Goldfields Co Ltd.
Lonmin Platinum Managing Director Peter Ledger told reporters a cap of 20 percent ownership by foreigners in Ghanaian companies curbed vital foreign direct investment.
"They (Ghanaian government) have played a role in preventing the Ashanti share price to move (upwards)," Ledger said, adding: "No foreigners can own any more than 20 percent in a Ghanaian company and that is keeping off many investors.
"We hope they will look at those restrictions with a view to relaxing them. The current government appears to be more willing to deal with these issues."
Lonmin owns near 30 percent interest in Ghanaian miner Ashanti Goldfields . Ledger reiterated Lonmin's commitment to divest from Ashanti when it achieved a fair price.
Lonmin shareholding in Ashanti is significantly above the government cap because it was acquired prior to imposition of what Lonmin executives saw as unfriendly restrictions.
The restrictions were imposed a few years ago in what the government said was a move to promote Ghanaian ownership of their own enterprises.
Ashanti shares have oscillated from a high of $6.50 to a low of $3.20 and currently trade at around $5.20, which analysts say is gross undervaluation.
Lonmin is the world's third-biggest listed platinum miner and makes most of its income from platinum mines in South Africa. It was formed by the demerger of late entrepreneur Tiny Rowland's pan-African Lonrho empire.
Ledger said Lonmin's stake in Ashanti was given as $275 million in its books. "Our stake, given the share price, should more than realise that," he told the Johannesburg briefing.
