Chiyangwa Washes Dirty Linen in Public

BY allegedly refusing to settle a US$8 000 valuation charge to Bard Real Estate, businessman Philip Chiyangwa could have just washed his dirty linen in public.


Court papers show that Chiyangwa, who owns various business interests in the country, attempted to muscle Bard Real Estate to up the value of his property business he hopes to see on the stock market one day.

 

Bard said the company was worth US$39 million but the businessman threw tantrums and did not even look at the valuation insisting Pinnacle Holdings was worth around US$600 million.

After Bard refused to inflate the value by 1 500%, Chiyangwa refused to pay saying the valuators had erred.
The lawsuit could open a can of worms for Chiyangwa and give regulators and shareholders in his listed ZECO and the public a rare glimpse into the self-made millionaire’s business practices.

Elsewhere, shareholders would be concerned at such a revelation.

Investment analysts say the figure he wanted was a “little overboard” compared to sector peers like Mashonaland Holdings and Dawn Properties who are relatively larger players to pinnacle.

Pinnacle shareholders would have gotten their hands scorched after subscribing for overvalued shares, analysts said.

Analysts said: “That valuation looked a bit overboard and would have faced a lot of scrutiny from the market. The interest was going to be there at listing but then it would decrease.”

Pinnacle is owned is a subsidiary of Chiyangwa’s Native Investments Africa Group, a company which benefited from a number of deals during Chiyangwa’s affirmative action days.

Chris Muronzi