Zimre to offer 22 cents to CFI minorities

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Zimre Holdings, through its investment vehicle, Stalap Investments, has made an offer to minorities of CFI Holdings as the battle to control the conglomerate escalates. Stalap will be offering 22c per share to minorities an 18% premium, CFI is currently trading at 18c per share. In a letter to FBC Securities managing director Mr Benson Gasura, ZSE acting chief executive Mr Martin Matanda Okayed Stalap’s application to issue the circular.“The listing committee has now approved publication of Stalap’s mandatory offer circular to CFI Holdings Limited’s minority shareholders. Kindly provide the final circular with an amended timetable of events providing for the delays experienced on the previous timetable and proceed to publish.”Stalap, an investment vehicle jointly owned by the National Social Security Authority and ZimRe Holdings Limited, is compelled to make a compulsory offer in line with ZSE rules after announcing its shareholding was now 41% in the group. – Fingaz, 13 July 2017

Reserve Bank of Zimbabwe governor John Mangudya has said the central bank is looking for a $500mln facility to enable the country to go through the liquidity dry spell after the tobacco season ends. Mangudya said the facility is expected to restore confidence in the economy as it exceeds the $250mln which is the gap between what is needed and what the country currently have in the Nostro accounts. Currently there is $350mln in the nostros, representing a shortfall of $250mln. The central bank chief was speaking on the sidelines of the University of Zimbabwe Media and Business Stakeholders Symposium. He also highlighted that the country needs $600mln in Nostro accounts for the economy to run smoothly. Meanwhile, he said negotiation for a bond notes extension facility were progressing well but there was no figure yet as to how much the facility would be extended by as they were still looking. “We are in negotiations with a foreign bank so that they provide us with facilities to be able to work on. If there is no money, we will remain at 200 mln, but if it’s there, the will be an extension because they have to be backed. We are still looking around, our chances are good we are making progress,” he said. The country rolled out a $200mln Afrexim backed bond notes facility and to date Mangudya said $175 mln has been released into the market with obvious indications that the facility will be exhausted this year. – Financial Express (Online)

Government has made an application for a $153 million loan facility from China EximBank for the upgrade of Harare International Airport. Harare International Airport, with a passenger capacity of 2,5 million per year was last upgraded in 2001. Transport and Infrastructure Development Minister Dr Joram Gumbo who is currently in Malaysia on Government said that all the requirements by the Chinese financial institution had been met. The loan will be an extension of the Victoria Falls Airport upgrade which the Chinese funded. Therefore, all the requirements as tendered by China EximBank have been met,” said Dr Gumbo. – The Herald, 13 July 2017

Zimbabwe is starved of access to foreign finance and only has three international banks availing credit to the country due to isolation and sanctions that Western countries imposed. Most of the economic challenges the country is facing which include struggling to service debts and stunted economic growth are linked to the embargo. Reserve Bank of Zimbabwe Governor, Dr John Mangudya said the isolation had seen the country struggling to service its huge debts as well as lose support of 50 corresponding international banks in the past decade. The corresponding banks were international financial institutions that provided services such as wire transfers, business transactions, accepted deposits and gathered documents on behalf of local banks. Dr Mangudya said challenges such as cash shortages and unemployment were symptoms of an economy that was not properly functioning. Zimbabwe has for the past two years battled shortages of the United States dollar, the main currency used for day to day transactions, which the central bank said can only be addressed by solving the country’s fiscal deficit, trade deficit, consumptive spending and market indiscipline. – The Herald, 13 July 2017

Econet Wireless Zimbabwe, which controls 98 percent of the Long Term Evolution data customer market share, has announced a major data network upgrade that will see the mobile network market leader achieve 100 percent 3G coverage across the country by the end of this year. Long Term Evolution refers to the generation of network technology. The third generation network, known as 3G, is the oldest technology of the group. 4G is the fourth generation data network. Announcing the developments at the company’s Msasa head office in Harare yesterday, Econet Chief Executive Officer Douglas Mboweni said the upgrade exercise had already started.  – The Herald, 13 July 2017

ZSE sugar’s refiner Starafricacorporation says it is no longer  under pressure to sell it s33.3 percent in Tongaat Hulett Botswana, which has failed to find a buyer five years since it was put on the market. As part of the deal, the group was to also offload its entire shareholding in transport subsidiary Blue Logistics with both transactions expected to rake in at least $10 million. Starafrica’s company secretary Aldo Msemburi said disagreements between the Botswana business shareholders and potential buyers had scuppered the selloff. – Fingaz, 13 July 2017

 Harare City Council cashiers are making a killing by intercepting thousands of dollars in cash payments which they then “sell” at a premium to bank debit card holders desperate for cash. The illegal transactions were exposed by audit manager Joseph Issa in his report to the city council’s audit committee. He told the audit committee of the “interception of cash from ratepayers with a view of raising money for non-council employee card holders”. Issa reported that illegal money transfers were also prevalent within the City Treasurer’s Depart ment. The report further reads: “A review of the Point of Sale Machine transactions for the period 13 February to 16 February had revealed that cash was being raised on behalf of card holders whose bank accounts were debited and various amounts credited to several ratepayers accounts. Issa said it was observed that there were “no laid-down procedures regarding the act”. Finance director Tendai Kwenda said he had since written a memorandum which was put in banking halls advising council workers that it was an offence to “intercept” cash. – The Herald, 13 July 2017

overnment has set up an inter ministerial committee to come up with a framework for the Tokwe Mukosi Dam master plan and ensure urgent utilisation of the water body. The framework will highlight projects to be undertaken on Tokwe Mukosi Dam and surrounding areas. Briefing the Parliamentary Portfolio Committee on Environment, Water, Tourism and Hospitality Industry at Tokwe Mukosi Dam on Tuesday, Zimbabwe National Water Authority director for Engineering and Hydrology Services, Engineer Taurai Maurukira said the master plan would have a positive impact on economic activities of communities living near the dam. He said any delays in utilising the facility would result in loss of water to the Runde catchment area and to Mozambique. Eng Maurukira said there were huge investment opportunities at Tokwe Mukosi Dam. – The Herald, 13 July 2017

SeedCo says it requires in excess of $30 million in the next three to five years to capacitate its regional operations. This comes as the seed producer is preparing to unbundle and list its external operations on the Botswana Stock Exchange (according to sources) to raise capital for expansion and to fund growth opportunities. The company has been working on expanding its regional footprint over the years and has since established in a number of regional markets. SeedCo CEO Morgan Nzwere told FinX that the company was now looking at developing Tanzania, South Africa, Botswana Nigeria and Kenya. SeedCo has also invested in excess of $38 million on external markets in research and development which Nzwere said had seen capacity to growing 10% on an annual basis. – Financial Express (Online)

By |July 13th, 2017|Categories: Headlines|

About the Author:

Kudzanai’s background in financial journalism with ZFN, combined with a continuing education in financial management, provide a solid grounding for his work in the research department.