Innscor seeks controlling stake in Colcom

Eric Chiriga

INNSCOR Africa Ltd plans to increase its shareholding in Colcom Holdings to above 50%.


The group currently holds a 43,

8% stake in Colcom.


“We want to hold a controlling stake of above 51% in Colcom,” John Koumides, the chief executive officer of Innscor, said.


Koumides, who was recently appointed Innscor boss and taking the

executive responsibility from Zed Koudounaris, said they were increasing their stake in Colcom by making an offer.


“I cannot give you inside information because it is contrary to the Zimbabwe Stock Exchange regulations,” he said.


Innscor is making an unconditional offer to the minority shareholders of Colcom to acquire their shares.


The closing date for the offer is today.


“Innscor’s stake in Colcom has resulted in a mutually beneficial relationship, which the directors of Innscor believe could be expanded further to unlock value for all shareholders,” Innscor said in a circular to shareholders.


The group says the acquisition of a greater stake in Colcom will provide Colcom with greater access to Innscor’s cash resources and allow Innscor to commit additional resources to Colcom to assist with operational issues and increase its market share.


Innscor’s 43,8% shareholding in Colcom was acquired primarily through the acquisition of the remaining assets of the joint venture, Triple C Pigs, by Colcom from Innscor and the underwriting of Colcom’s rights offer in July 2004 by Innscor.


Last year, Innscor increased its shareholding in National Foods by 10% to 36%.


In 2003 the group acquired a 26% shareholding in Natfoods at a cost of $3,8 billion via an exchange of shares.
 
After the deal, Innscor became the second largest shareholder in Natfoods after Tiger Brands.


Innscor is the holding company for a consumer-oriented group operating in the distribution, light manufacturing and food outlet businesses.


The executive change and outlook at Innscor, which saw Koudounaris relinquish his deputy chairmanship post, also paved way for Ray Kaukonde’s ascendancy at the food, leisure group.


A predominantly motoring tycoon, Kaukonde is now deputy chairman of the continental giant.

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