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TA identifies partners in mining

Paul Nyakazeya

INVESTMENT group TA Holdings said this week it had identified companies in which to spend cash for its planned investments in the mining sector.<

Speaking to businessdigest at the group’s analysts’ briefing, TA Holdings executive director Don McDevitt, said plans to venture into mining were now at an advanced stage and an announcement would be made “soon” once a definite decision was made on the investments.

“A number of companies have been put on the table. Once a synergy that suits our operations is agreed upon, an official announcement would be made,” McDevitt said.

McDevitt however could not disclose the names of the mining companies that TA Holdings was considering investing in, saying they were still conducting “due diligence” exercises on them.

He however hinted that the companies were from the southern Africa region.

“This deal has been on the cards for a long time but it is now taking shape. We do not want to be miners but the planned investment is part of the group’s expansion,” McDevitt said.

TA chairman Shingi Mutasa was earlier this year quoted as saying the investment company was looking at investing in platinum or gold mines.

Since 2004, TA Holdings had been pursuing opportunities in the mining sector.

Meanwhile, the group’s turnover for the interim period ending June 30 increased by 1 025% to $2,56 billion when compared to the same period last year.

Total investments income during the period under review rose by 1 919% to $1,29 billion, while the group’s cash and cash equivalent was $98 million as at June 30.

“The first half of the year saw a continuation of the group’s dependence on investments income underpinned by a focus on effective use of capital in all subsidiary companies,” said the company in a statement accompanying its financial results.

The net asset value per share increased by 1 682% from $0,82 last year to $14,61 as at June.

The group’s insurance operations have been focusing on improving underwriting discipline and reinsurance treaty structures during the first half of the year.

TA Holdings said the initiatives being undertaken at the insurance subsidiaries were expected to result in the group posting positive underwriting results.

Associate companies reportedly had a satisfactory reporting period.

“Given the hyperinflationary conditions in the country, the industry is working with the government to establish a more economically viable pricing formula. The focus is to ensure a correct safety environment while initiating overdue repairs and maintenance programmes,” the company said.

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