HomeNewsABC to pull out of PG as TA eyes controlling interest

ABC to pull out of PG as TA eyes controlling interest


ABC Holdings says it is looking for the most opportune time to completely pull out of PG Industries in which it still holds a sizable stake after initiating an “orderly exit” last year when the economy “dollarised”.
The banking institution still controls 15% of PG Zimbabwe and 37% of PG Botswana. TA Holdings is looking to grab this stake to ramp up its shareholding in the diversified construction company to a controlling interest, from 30% at present.
“We’re just looking at the most opportune time to pull out of PG,” Beki Moyo, ABC chief financial officer, said yesterday.
ABC sold 15% of PG to TA last year.
The dual-listed company has also pulled out of Starafrica and offloaded its Old Mutual portfolio to focus on core business, and has used the proceeds to fund its retail banking project in Zimbabwe and other countries.
Backed by income from the disposals, ABC subsequently cancelled a $25 million convertible loan agreement with Citi Venture Capital International (CVCI), a division of Citigroup.
“We were able to raise more or less the same amount of money when Zimbabwe ‘dollarised’,” Group CEO Douglas Munatsi said. “The CVCI deal was going to dilute everyone.”
The disposals have, however, affected the holding company’s income, as they coincided with its decision to stop charging its subsidiaries management fees.

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