PLANS are underway to dispose of Charhons building to any takers at an undisclosed amount to recapitalise the business, a circular from Cairns Holdings Limited has shown.
Charhons is a unit of Cairns.
According to a circular to shareholders this week, Charhons is now operating at 40% and was performing very well.
“Pursuant to resolutions passed in the creditors’ meeting, we are disposing the Charhons premises and relocating operations to Cairns Ardbennie complex,” Cairns said.
Relocating Charhons to Ardbennie would mean that all Cairns operations would be under one roof and reduce costs as it will have one administration block.
Output for Cairns Holdings Limited has gone up to 35% for the 21 months that the company has been under judicial management from 5% when the company went under judicial management.
“The group continues to perform reasonably well in a difficult trading environment and has been profitable since judicial management,” it said.
Cairns said it was finalising discussions with Vasari Global Holdings and hopes the deal would have been concluded by the first quarter of next year.
Vasari Global Holdings is set to acquire a controlling stake in Cairns Holdings and will inject $20 million into the business.
The company was sourcing for $8 million to recapitalise the business and the circular showed that it was still work in progress.
Cairns was placed under judicial management in November 2012.
It was delisted from the Zimbabwe Stock Exchange in July last year.
The Reserve Bank of Zimbabwe had 63,3% shareholding in Cairns Holdings, but disposed it to reduce debt and dispose of its non-core assets.
Cairns Holdings received $1 million from the Distressed and Marginalised Areas Fund (Dimaf) last year which helped the company increase its output.