INDUSTRIAL Corporation of Zimbabwe (IDCZ) has disposed of its shareholding in Almin Metal Industries and Stone Holdings as part of a restructuring process to be completed in the current financial year, businessdigest can report.
The restructuring exercise, which began early last year, will see the group rid itself of some entities through privatisation and liquidation. Zimbabwe Copper Industries has already been liquidated. Zimglass is under final liquidation while discussions are ongoing with potential investors for a number of its entities.
In e-mailed responses, IDCZ general manager Benjamin Kumalo said the group had disposed of a 51% equity stake in Almin Metal Industries and 49% interest in Stone Holdings. Kumalo said the IDCZ was in discussions with several original equipment manufacturers (OEMs) to partner the corporation in Willowvale Motor Industries and Deven Engineering.
He said an investor for Iranzim Textiles and Travan Blankets has been identified.
“Since the restructuring exercise started, the IDCZ has disposed of its 51% shareholding in Almin Metal Industries and its 49% interest in Stone Holdings. Zimbabwe Copper Industries was liquidated whilst Zimglass is under final liquidation.The Iranzim Textiles and Travan Blankets judicial manager has identified an investor for the two entities. The IDCZ was a majority shareholder in both Iranzim and Travan Blankets, both of which were set up as joint venture companies with an external investor,” he said.
“Motira (Private) Limited, which was a tractor franchise holder and retailer, ceased operation in 2008 and transferred the franchise to a fellow subsidiary company with a wider branch network.”
Kumalo said his group was expecting to conclude the restructuring this year and finalise various transactions as well. Chemplex and Zimbabwe Grain Bag are some of the transactions Kumalo hopes will be concluded this year. He said the IDCZ intends to identify and secure strategic partners for Willowvale Motor Industries and Deven Engineering. This is expected to help the group to revive its main function of being the financier of industrial development.
The IDCZ has enlisted Ernst & Young Advisory Services (EY) to facilitate the disposal or dilution of its equity stake in Chemplex Corporation and in its non-fertiliser manufacturing business units.