THE Industrial Development Corporation (IDC) is set to acquire close to 26% stakes in struggling Fresca Holdings and David Whitehead Textiles (DWT), which w
as this week placed under judicial management.
The state-owned corporation is already conducting due diligence exercises on both companies, whose outcome will determine its participation in the firms.
Initially IDC intended to also buy into National Blankets but later ditched the company from the list of prospective take-overs.
Garikai Ntuli, IDC’s legal and corporate adviser, said although the due diligence exercises on Fresca and DWT were not yet complete, they were positive of buying shares in the two companies.
“IDC is not just a financier and neither does it give out loans. It is IDC’s policy to acquire at least 26% stake in any venture that it is involved,” Ntuli said.
He said IDC would acquire majority stakes if there was an opportunity and this would be determined by the outcome of the due diligence exercises.
Ntuli said IDC currently holds no stake in all the three companies.
Fresca and DWT have been facing operational problems for a long time now.
Both companies recently experienced temporary shut downs following disputes between workers and management over payment of salaries.
DWT was this week placed under judicial management while it has been reported that Industry and International Trade minister Orbert Mpofu ordered Fresca to reopen.
IDC is the only parastatal that is performing well compared to others that have been consistently making losses.
It is the holding company of Willowvale Mazda Motor Industries and Amtec.