LOCAL private equity and advisory firm, Brainworks Capital, has emerged as Zimbabwe’s top deal maker, structuring four transactions worth nearly $750 million under the country’s indigenisation and empowerment programme. Report by Bernard Mpofu Chief Business Reporter
According to a statement issued by the firm yesterday, Brainworks structured the multi-million dollar deals for foreign-owned companies complying with an equity law compelling them to dispose 51% shareholding to locals.
Last week’s signing of $550 terms of agreement for platinum miner Mimosa Mining Company, according to Brainworks, was the largest empowerment deal so far.
Before the signing, Mimosa was a joint venture between Aquarius Platinum and South Africa-based Impala Platinum.
Under the agreed empowerment plan, Mimosa will relinquish 31% to the National Indigenisation and Economic Fund and 10% apiece to the Zvishavane Community Share Ownership Scheme and an employee share ownership scheme.
The advisory firm, according to the statement, also acted as financial advisor in the $142 million empowerment deal between the Johannesburg Stock Exchange-listed Anglo American Platinum Limited and Indigenous Entities led by the government of Zimbabwe.
Brainworks successfully acted as financial advisor in the $27,8 million empowerment deal between the Johannesburg Stock Exchange-listed Pretoria Portland Cement and Indigenous Entities led by the Zimbabwean government.
The private equity and advisory firm also played a critical role in structuring the $30 million empowerment deal between the Toronto Stock Exchange-listed Caledonia Mining and Indigenous entities.
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Brainworks Capital is majority-owned by Zimbabwean indigenous shareholders; primarily local pension funds and is active in proprietary investments and advisory services. The African Development Corporation is Brainworks Capital’s aligned strategic partner and international shareholder, holding 28,23% of the company’s shares in issue.
The advisory is currently undertaking a pre-IPO private placement that is aiming to raise $30 million for further investment in its investee companies and new deal pipeline.
This amount is being raised through the issue of 300 million ordinary shares at a price of $0,10 per share.
