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CFI courts partners

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CFI Holdings says it is engaged in negotiations with potential strategic partners regarding investments in Victoria Foods Limited and Crest Poultry Group that could result in capital injection and efficiencies to the divisions.

The group further said it had sought and obtained permission from the Zimbabwe Stock Exchange to delay publishing its financial results for the year ended September 2011.

In a cautionary statement, CFI company secretary Sarudzai Gurure said: Non-disclosure agreements have been executed with interested parties and a due diligence process has commenced. It is likely that conclusion of these investment initiatives will bring capital and efficiencies to the companys core operating divisions.

Further to this, the board has proposed undertaking a capital raise transaction at holding company level, combining an appropriate mix of equity and appropriately priced medium and long-term debt.

Conclusion of these processes will significantly strengthen the financial standing of the company.
Gurure said specific efforts were being made to dispose the companys shareholding in Beira Grain Terminal and Windmill.

Proceeds from the two disposals would go towards reducing company debt.

In emailed responses to NewsDay, CFI chief executive officer Steve Kuipa said the extension of the release of financials was necessitated by the recapitalisation process the company was undertaking.

The results will now be published on January 31 with analyst briefing on January 30th 2012, said Kuipa.
Kuipa however said he could not divulge extensive details of the companys recapitalisation ahead of the release of financial results.

These will be dealt with at the analyst briefing and the publication that follows that event, said Kuipa.
The company intends to raise about $8 million through disposal of non-core assets to retire expensive debts and finance working capital.

Disposal of assets comes after the group shelved its proposed rights issue of between $10 million and $20 million.

Shareholders refused to take up the rights offer saying the company shares are undervalued and feared this would negatively affect the companys net asset value.

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