THE National Social Security Authority (Nssa) has snapped a 6% stake in Hunyani holdings, becoming the fourth largest investor in the paper packaging and converting company.
Nssa recently snapped the 20,7 million shares through a transaction carried out at 9 US cents, a 12,5% premium.
The stake bought was held by Equivest Nominees.
The transaction value of the deal was US$1,867 million. Hunyani has slightly above 319 million shares in issue.
Majority shareholders in Hunyani are TSL and Nampak Holdings, each with a stake of more than 38%, followed by Old Mutual Life with close to 10%.
The transaction comes just after a foreign investor bought an 8% stake in Hunyani’s parent company TSL in mid-July.
Hunyani is one of the few companies that has managed to generate a profit since dollarisation, after it closed loss-making operations.
The group expects to retool its operations by spending US$9,3 million on capital expenditure over the next four years, which will be funded by medium-term loans and cash flows.
It expects volume in the year-to October 2012 to exceed the growth national GDP growth, while earnings per-share are expected to be ahead of inflation.
In terms of TSL’s financial performance, Hunyani brought in the most revenue in the half-year to April 30, followed by Bak Logistics, Propak, Chemco, TSF and then Avis.
However, chief executive Washington Matsaira said even though Hunyani had contributed the most in revenue, its performance had been poor, with the pretax line at 3% of revenue.
The move by Nssa means the fund is moving towards a diversified investment portfolio. The authority is also consolidating its property portfolio.
Nssa also acquired Ximex Mall, but redevelopment –– which was scheduled to commence in July 2012 –– has been set aside pending the exit of the sitting tenants in the building.
The redevelopment will see the demolition of the existing rundown building to make way for a new multi-storey facility, within a budget estimate of US$16 million. Construction should take 24 months.
Nssa is also carrying out phase one of the Glaudina housing project, consisting of 394 medium-density stands, 73 high-density stands, eight commercial stands and various other stands targeted at institutions.
The project is set to be completed by August 31, whilst the servicing of land for phase 2, comprising 1 600 stands at a cost is US$9 million, is due to commence later this year.
Nssa property portfolio yield averages 8,25%, slightly below industry averages of 9%, whilst the Nssa vacancy rate is only 5%.
Property companies in Zimbabwe have average vacancy rates of between 10 and 15%. –– Staff Writer.