TEDCO Industries shareholders have approved the sale of their manufacturing concern to an investment vehicle called Investco to be set up by Steinhoff International, a So
uth African-registered firm.
In an overwhelming 75% yes vote, shareholders approved of the sale of the manufacturing concern to the South African company. Only 0,0005% voted against whilst 0,0664% abstained.
The transaction will see Steinoff through its division, Gommagomma owning 51% of the company and A Simba Holdings owning the remaining share of 49%.
“Steinhoff, through its wholly-owned subsidiary Gommagomma was to own 51% of the shareholding of each of the companies while A Simba was to own 49% of each of the companies,” said Tedco in a statement.
Under the deal, Tedco expects to operate two companies that will be set up jointly – Swetok and Stenvet – with one of the arms being eventually registered for Export Processing Zone operations. The deal will witness Tedco Industries retain its debts and assets.
“On completion of the transaction, Tedco Industries will retain the remaining assets, including debtors and in addition Tedco will retain primary responsibility for the liabilities,” the statement said.
Tedco said the South African concern would in turn inject funds into the company for branch expansion, refurbishment and the installation of a new computer network.
The final vote of approval by shareholders comes against the backdrop of a serious share dispute between former chief executive officer Michael Ndoro and majority shareholder, Simba Mangwende.
The disagreements subsequently led to the resignation of Ndoro.
The dispute followed an agreement between Mangwende and Ndoro over the handing over of shares which would have made him a controlling shareholder with 20% of which Mangwende is said to have used collateral security with Interfin. Tedco Industries are the owners of Blooms, House of Kumali and Radio Ltd.