HomeBusiness DigestGulliver stake up for grabs

Gulliver stake up for grabs

Shakeman Mugari

A SIGNIFICANT stake of Gulliver Consolidated Ltd (Gulliver)’s issued share capital is set to go under the hammer on the Zimbabwe Stock Exchange (ZSE) next week, reliable

sources have said.

It is understood that the stake to be off-loaded represents about 10% of Gulliver’s issued capital and is on the market awaiting buyers.

“There is a seller of about one million Gulliver shares that are about to be sold. The parcel is currently with the broking firm, which is now looking for potential buyers on the stock market,” said the source that is privy to the pending transaction.

The businessdigest understands that the African Banking Corporation Stockbrokers have been appointed to handle the billion-dollar deal.

Although a seller is yet to be made public, it is reliably understood that it could be one of the company’s directors.

“ABC stockbrokers actually have the parcel but they are yet to approach the potential buyer for bids at the stock market,” said the source.

Gulliver’s shares are tightly held on the stock market with about 10,6 million shares in circulation. The pending deal is worth $1,3 billion.

The group has set out to become a recognised supplier of steel and steel-fabricated products within the Southern African Development Community and the Common Market for East and Southern Africa with a focus on growth and improvements in key productivity ratios.

Gulliver group financial executive Luckson Dziva said the company was not aware of the transaction.

“The company is not aware of anyone selling such a large amount of the company’s shares. In fact, Gulliver is not informed of any sale of shares unless they are a controlling stake,” said Dziva.

A senior official at ABC Stockbrokers could neither confirm nor deny the pending deal. “We are not aware of that. In any case, there is the issue of client confidentiality so that even if we had those shares we would not be in a position to make it public,” he said.

Analysts say the seller might be one of the directors or a shareholder that wants to move out.

“A million shares for other listed companies might be insignificant but for a company whose shares are tightly-held like Gulliver, it means a lot of changes. It could be one of the large individual shareholders in the company,” said an analyst.

Gulliver is organised into four main business segments – civil engineering, housing development, retail, and fabrication.

The group’s operating divisions include Highway Construction, Industrial Galvanising & Fabricating, Lysaght Steel Merchants, More Wear Industries, Transport & Crane Hire, Gulliver Workshops, and Gulliver Management Services.

The company’s shares yesterday traded at $1 300 on the bourse.

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