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M&R in move to retain staff, up profitability

Staff writer

INDUSTRIAL and con-struction concern Mur-ray & Roberts (Zimbabwe) Ltd (M&R) intends to introduce a senior share

option scheme to retain management staff and increase profitability.

Formerly International Holdings Ltd, M&R is a holding company owning investments in two major operating divisions – contracting and manufacturing.

Prominent businessman and politician Paddy Zhanda who sits on several other influential boards including NMB Holdings Ltd currently chairs M&R.

M&R this week said it would be holding an Annual General Meeting (AGM) immediately followed by an Extraordinary General Meeting (EGM) on October 30 to consider, and if deemed fit, pass several resolutions.

The salient points of the scheme are that options of not more than 20 million shares, being 9,79% of the company’s issued ordinary share capital be granted.

The scheme would come into effect on the date it was adopted by shareholders.

The company will ask shareholders to approve the purchase of its own shares in issue up to a maximum of 20 million at a purchase price ranging between $100 and $600 each.

This authority would expire on October 31 2004.

The employee share incentive scheme was intended to enable senior employees of the company and its subsidiaries to acquire shares.

The shares allotted to the scheme have been fully allocated over the period and the scheme has now been closed to any new allocations.

The company said in the place of the share incentive scheme the board had proposed, subject to the approval of shareholders, the introduction of a share option scheme for senior executives, the purpose ofwhich is to pro-mote the retention of senior executives responsible for the management of the group.

It would also provide them with incentives to advance the profitability and the company’s continued growth.

Share option schemes have recently gained popularity in the country as they are seen as economic empowerment vehicles.

Analysts said the schemes also enabled employees to give more to the company because they felt that they owned it.

Some workers have, however, opted out of the share option schemes and have instead invested in the stock market where it is easier to reap large sums of money much faster.

M&R’s contracting market has undergone major changes while the manufacturing operations regularly achieve their budgets.

Management are in-vestigating several in-vestment proposals which would enable the group to utilise its cash resources and strengthen its export potential.

The company has secured regional markets in Botswana, Zambia, Tanzania and Mozambique. – Staff Writer.

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