HomeBusiness DigestCambria snaps Radar shares

Cambria snaps Radar shares

LONDON-listed Cambria Africa Plc subsidiary Paynet Zimbabwe has snapped up a 7,83% equity stake in construction-allied and brick manufacturing company Radar Holdings Ltd in a US$1,6 million deal.

By Melody Chikono

This follows the recent amendment of its articles of association which had remained aligned to a publicly traded company prohibiting shareholders to trade or divest from the company in line with Zimbabwe Stock Exchange (ZSE) rules.

Radar was delisted from the ZSE in 2016 following its voluntary application for suspension.

The acquisition was concluded on August 30 2018 and was facilitated through the subscription by Paynet of 62,84% of the ordinary shares in AF Phillips (Pvt) Ltd and was settled utilising Paynet’s existing cash resources.

AF Phillips holds a 15,6% interest in Hinshaw (Pvt) Ltd which, through its wholly owned subsidiaries, holds a 79,65% interest in Radar.

Through this transaction, Paynet will be entitled to nominate a director to both the Radar and Hinshaw boards.

“Radar Properties owns 2,166ha in prime development land in Zimbabwe and 8 residential properties. Macdonald Bricks is a brick manufacturer with the capacity to produce 91 million bricks per year. It has a dominant market position in the Matabeleland region in Zimbabwe. Radar’s most recent published consolidated results for the 6 month period ended 31 December 2017 reflected Net Asset Value of $31,5 million, Revenues of $3,3 million and Profit After Tax of $391,000.

In addition, the Radar Acquisition creates the possibility to increase Cambria’s investment in Radar should more shares become available in future,” said Cambria in an update .

Meanwhile, Payserv achieved US$7,56 million in revenues, and an increase of 18% from the US$6,40 million in 2017 on the back of a 14% increase in transaction volumes to 27,659 million. Its consolidated earnings before interest, tax, depreciation and amortisation (Ebitda) for the year increased by 42% to US$3, 52 million from US$2, and 47 million.

In the full year ending 31 August 2018, Payserv achieved a profit before tax before minorities and restructuring costs of US$3,3 million, a 49% increase from FY17.

After minorities and restructuring costs, Payserv remained with US$2,6 million in profit before tax, up 37%. Millchem Zimbabwe recorded its first full year profit in four years, reporting a US$406 000 turnaround in Ebitda to US$209 000 from a loss of US$197 000 in FY 2017.

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