Afre recapitalisation on

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Africa First ReNaissance Corporation (Afre) is pressing ahead with its $15 million recapitalisation which failed to take off last year.

Douglas Hoto, the new Afre chief executive officer, said the initiative would be implemented before June.

“I cannot confirm the figure yet but there will be capital raising,” he said in an interview.

“I think plans are broadly the same. Operating companies did very well last year.

“There is also need to put capital in the holding company itself (Afre group) so it can do its expansion plans in terms of strategy.

“It will be done in the second quarter of the year,” he said.

Afre indicated last year that it would float a $15 million rights issue, which it failed to undertake.

The plan was to recapitalise the group’s subsidiaries that include FMRE Property and Casualty Zimbabwe and FMRE Property and Casualty Botswana and Tristar Insurance.

The company wanted the money to pay off its internal debt and strengthen its balance sheet.

Former Afre chief executive officer Sibusisiwe Ndlovu — in June last year — indicated the group had secured an underwriter although she refused to disclose the identity. Hoto said the company would be getting $1,5 million that was locked up in ReNaissance Merchant Bank last year when the bank was put under curatorship.

“We do have a deposit there and it has to be dealt with like any other depositor,” he said.

For the six months ended June 30 last year, Afre recorded a profit after tax of $4,6 million indicating a 165% loss after tax of $7,2 million.

The group will be releasing its full year results in the next few weeks.