ART Corporation Ltd chief executive officer Richard Zirobwa says the battery-manufacturing division – Chloride Zimbabwe – remains part of the group despite speculation th
at the company is planning to sell off the division.
Zirobwa confirmed to businessdigest that the group had however received offers to buy Chloride Zimbabwe.
“We did consider some offers on Chloride but no transaction was made,” he said. “It’s also speculation that the division had been snapped up. At the moment Chloride remains very much part of the group.”
He said Art Corporation had suspended the transaction because the timing would not have added any value to the company’s shareholders.
“We suspended the talks because we felt that at the current situation the transaction would not have added shareholder value,” Zirobwa said.
The chief executive said Art Corporation would hold on to the battery manufacturer until a time when such transaction would benefit shareholders.
“Art Corporation will inform the market when the time is ripe. We are only waiting for things to stabilise before deciding on any potential transaction,” he said.
The company issued a cautionary statement last week announcing the termination of the talks, putting to rest three weeks of market speculation.
Commenting on the state of business in Chloride, Zirobwa said the division had performed in line with expectation and was contributing significantly to the total group earnings.
“The division has made significant exports and is expanding local operations by opening express centres throughout the country,” he said.
“The turnover and profit of Chloride have been satisfactory and management is happy.”
Zirobwa however, refused to give further details on the company’s predicted earnings.
Art Corporation acquired Chloride Zimbabwe in 1997 and has contributed significantly to group earnings.