Innscor shareholders approve BEE deal

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ZIMBABWE Stock Exchange-listed Innscor Africa Limited shareholders have approved the sale of 9,23% of the group’s shareholding to a company owned by Zanu PF heavyweight Ray Kaukonde as the company complies with the country’s empowerment.

By Business Reporter

According to one of the resolutions carried at the company’s extraordinary general meeting held last Friday, Benvenue Investments will acquire
50 million ordinary shares and the company will also surrender 30 million shares which represent 5,54% shareholding to the Innscor Africa Limited Employee Share Trust.

Under the country’s indigenisation and empowerment regulations, foreign-owned firms should sell 51% shareholding to locals.

“Special resolution one, reservation of shares for Benvenue Investments: to consider and if deemed fit to pass or without modification the following resolution as a special resolution,” company chairperson David Morgan said.

“To approve the reservation for a period of 10 years of 50 million ordinary shares out of authorised unissued share capital of the company as of the date hereof and the issue and allotment of such ordinary shares to Benvenue Investment Limited in cash, at a price per share calculated at the higher of 75% weighted average price of Innscor over the previous 60 trading days or for the first five year $1,37 per share and for the second five years $2,01 per share, whichever is the higher, in the event Benvenue Investment private Limited exercise its option to subscribe for such shares,” Morgan said.

Last year, government gave Innscor a seven-day ultimatum to submit a comprehensive indigenisation implementation plan after authorities decided the group was taking long to comply with the regulations.

Several companies have over the last year partially complied with the empowerment law after Zanu PF turned the heat on foreign firms that were resisting.
Last month, Zanu PF threatened 19 foreign-owned companies that allegedly defied government policy to indigenise and called on its government side of the administration to penalise the firms.

The list of defiant firms was given as South African mogul Mzi Khumalo’s Metallon Gold, Duration Gold Zimbabwe, Murowa Diamonds, Tongaat Hulett, Standard Chartered Bank of Zimbabwe, Zimasco, Zimbabwe Granite International, Noral Private Limited, Barrow Properties, KW Blasting Specialists, Astiz Private Limited, Lady Anna Custom Milling, Kenilwold Investments, Cable Cast Enterprises, Plate Glass Company Zimbabwe Limited, Pioneer Hybrid Zimbabwe, Stramit Centre Africa, Illford Services and Pannar Seed.

6 COMMENTS

  1. I thought indigenisation was mearnt to benefit the poor.So the rich will remain rich whilst the poor will continue to be poor

  2. As long there is exchange of huge cash,the poor can forget about the so called ndinginisation.Dont forget the pre election period slogans.It was Our Manifesto has excited everyone,not The manifesto.Meaning to say it belonged to a certain click not every Jack and Jill.The mistake was everyone was excited by it which was not supposed to be the case.And in our excitement we voted them into power.Cry our beloved country.

  3. U said it . Indiginisation is zanupff taking all the shares from prosperous companies ! The rich getting richer. Kukohwa pavasina kurima

  4. Tichapfumawo kana zanu isisiko. Handione ichigara makore mashanu ini. Yakuenda iwo. Nhasi ndezvenyu mangwana tichapindawo.

  5. i hope this article paints a clear picture about what they say when they talk about empowerment.Where do you think an ordinary zimbabwean will get that kind of money.

  6. kutopfeka ma t shirts akanz indigenise, empower develop blah blah blah. Enyu makepezi nezviya zvimatorch zvisingatani kufa. Mashares ndee politburo

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