TA still keen on PG

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TA Holdings says it is looking to increase its shareholding in glass manufacturing and building supplies firm, PG Industries.

The move follows an announcement by banking group BancABC of its intention to dispose of its 15% in PG Industries.

TA Holdings chief executive Gavin Sainsbury told shareholders last week: “This move could change the nature of TA Holdings, investment in PG from an associate to a trade investment.”

TA Holdings, which acquired 30% of PG Zimbabwe in 2009, has been chasing a deal to buy BancABC 15% equity interest in the diversified construction company and gain board control.

PG operates PG Building Supplies, PG Glass, PG Timber, PG Properties, Zimtile, DST, Manica Boards and Doors (MBD) and Mitek Zimbabwe.

TA Holdings already has a substantial stake in PG.
A fortnight ago BancABC Chief executive Douglas Munetsi announced the bank’s intention to sell its stake in the loss-making firm.

PG, the Zimbabwe Stock Exchange listed entity, posted an after-tax loss of $7,5 million as a result of closure of several company units and working capital constraints in 2010.

The company raised $11,2 million through a rights issue in December last year. A total $1,2 million was reserved for capital expenditure, while $3,9 million settled trading and other liabilities, including the capital fundraising transaction cost.

The group’s turnover from continuing operations in the nine months to December was $23,1 million.

Merchandise operations contributed $13,8 million, Zimtile $5 million, Glass operations $1,4 million, MBD $3,1 million while the group’s regional operations realised a turnover of $1 million.

TA Holdings group last week reported a loss after tax of $5,1 million weighed down by poor performance in PG Industries and other companies in which the group has investment interests.