Board changes on the cards at M&R

This comes after the consortium of local businesspeople on the one hand and foreign-based investors, Carlmac of South Africa, represented by Malcolm McCulloch, and Brait, an international group represented by Sam Sithole, bought a 47%  stake in M&R.

Sources close to Zumbani said the investors would want board representation post the transaction, a development that will see a board restructuring in line with the shareholder changes.

It was not clear if the shareholders would want to push for management changes.

A source close to the deal said given that M&R Zimbabwe  was a going concern,  there was no need for management changes.

When reached for comment Malunga said: “Zumbani is excited about the potential of M&R Zimbabwe. The company will be run by a board of directors. Any changes that may occur, if any, at management or board level, will be in line with best governance practice and meant to enhance shareholder value.”

This puts to rest speculation on the market that Malunga would bounce back at the construction company after it emerged that he was part of a consortium that bought M&R South Africa’s  47% stake in the Zimbabwean operation.

Zumbani paid just less than US$1,5 million for the stake.

A total 99 792 515 million shares exchanged hands in a book over last week.

McCulloch was an executive director of Murray & Roberts Holdings and chief executive of Murray & Roberts Contractors.

Sithole was Group Financial Director of Brait South Africa, a company which also has a listing on the Luxembourg Stock Exchange, while Zhanda is the current chairman of M&R Zimbabwe.

In a statement last week, Zumbani Capital chairman Zhanda assured the market that the company had no plans to delist the business.

M&R has been listed as a public company on the ZSE since 1974. The group has two operating divisions — contracting and manufacturing. The contracting division comprises Murray & Roberts Construction Zimbabwe and Proplastics.