HomeNewsIDC awaits Tanzanian investor response over Zimglass

IDC awaits Tanzanian investor response over Zimglass

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THE Industrial Development Corporation (IDC) is waiting for feedback from Tanzanian investors who recently expressed an interest in investing in struggling Zimbabwe Glass Industries (Zimglass).

By Victoria Mtomba
Business Reporter

IDC general manager Mike Ndudzo said on Wednesday that officials from Tanzania’s Kioo Limited were in the country recently to do a due diligence on Zimglass, the country’s sole manufacturer of glass packaging.

IDC’s financial advisor for the planned transaction is Afrasia Bank Limited which in 2012 valued the company at $13,2 million.

Ndudzo said a number of other glass companies in the world had been approached to invest in Zimglass by the bank. He said further evaluations would be done once a serious investor is found.

Zimglass resumed operations in August 2013, after suspending production for two years due to viability problems. The company built a new furnace after securing $8,5 million from local banks, but the funds were not sufficient to meet required production levels.

Zimglass invested in glass-making components such as independent section machines and quality inspection machines and refurbished the ceramic labelling machines and the packaging sections.

Ndudzo said the corporation had earmarked a number of its subsidiaries for disposal. But he said $100 million would be required to approve some of the applications. Ndudzo said IDC had since approached Treasury over the issue.

IDC plans to dispose of Sunway City residential area, IDC House, Stone Holdings, Zimbabwe Grain Bag, Allied insurance and Zimbabwe Copper Industries and others.
Meanwhile, IDC now has a new board chaired by Herbert Nkala who replaced John Mangudya, who is now the central bank governor.

Industrialist Kumbirayi Katsande will deputise Nkala while other board members include Gloria Zvaravanhu, John Mushayavanhu, Ndudzo, Robson Mafote, Shingi Mutasa, Muriel Fallala and Stanislaus Mangoma

IDC subsidiaries include Almin Metal Industries, Amtec, Sunway City, Allied Insurance, Zimbabwe Copper Industries, Deven Engineering, Willowvale Mazda Motor Industries, Sable Chemicals and Zimphos

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