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PG recruiting three managing directors

Roadwin Chirara

PG Industries Zimbabwe is hunting for three managing directors to head its newly formed divisions as part of the group’s restructuring.

lvetica, sans-serif”>The directors will run three investment companies formed as part of PG’s debt restructuring. PG’s debt has ballooned from $22 billion last year to over $40 billion.

The restructuring, which was approved by the board of directors, will significantly reduce the figure through the placement of its various properties and assets on the market.

To be off-loaded will be properties valued at more than $22 billion spread across the country and stakes in its various subsidiaries.

PG Industries which is heavily involved in the sale of construction products had proposed a debt restructuring exercise to offset the huge debt while retaining over $12 billion to be converted to a five-year 20% fixed interest debt instrument.

PG, which is a listed company, will dispose of its fixed assets in its subsidiary, Zimboard.

The deal will include the unit’s brand and trade names relating to its manufacturing business to a joint venture company (JVCO) of which one of the three required managing directors will head.

Having received the much needed shareholders approval the JVCO would acquire the latter’s assets for US$4,3 million, which will in turn court PG Bison of Mauritius to subscribe to a 49% stake in the venture company at a fee of US$2,1 million while retaining a controlling stake of 51%.

The deal will also see PG Industries assets in Plate Glass acquired by two subsidiaries operating under two ventures companies, which will now be formed after receiving the nod of the company’s shareholders on the transaction.

The two proposed companies are expected to pay $19,6 billion for the assets including the brand names, trade names and inventories related to the operation of which PG South Africa is expected to take up 51% equity in the two venture companies for R9,99 million.

Although the deal has managed to garner shareholders approval, the company will still have to seek the approval of the central bank because of the foreign currency element, which is constituted in most of the disposal deals.

PG Industries Zimbabwe share structure shifted in 2001 when the majority shareholders, the Lubner family, sold a 27% stake to Laserson Investment controlled by the former chief executive Gerald Mujaji and former financial director-cum-CEO, Nyasha Zhou.

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