Local consortium snaps majority stake in ART

0
1109

A LOCAL business consortium has taken majority shareholding in Amalgamated Regional Trading (ART) Holdings Limited and a board meeting is set to take place to discuss the future of the company.

BY VICTORIA MTOMBA

In a statement yesterday, ART chairman Moses Chundu said Cranbal Investments (Private) Limited, Silvermine Investments (Private) Limited and Zadmab Limited now hold 258 578 541 shares in ART while the minority shareholders hold 253 482 383.

“The shareholding structure of ART Holdings after the offer shall therefore be as follows Cranbal Investments (Private) Limited, Silvermine Investments (Private) Limited and Zadmab (Private) Limited now hold 55,33% while minority shareholders will hold 44, 67%,” Chundu said.

“No decisions have been made by the board in respect of any further corporate actions relating to ART Holdings Limited.”

Before the offer, Zadmab, Cranbal and Silvermine had a combined shareholding of 45,7% thereby exceeding the 35% threshold.

ART made a mandatory offer to buy out minorities for the company to comply with Zimbabwe Stock Exchange regulations.

The local bourse rules state that a person or company which requires a minimum offer of 35% has to make an offer to other shareholders.

The local business consortium has helped ART to get a $3 million working capital facility and $15 million for capital expenditure.

Phase 1 of the company’s recapitalisation exercise has seen equipment worth $1,9 million commissioned at Eversharp, Chloride and Kadoma Paper Mills.

The three investment vehicles Cranbal, Silvermine and Zadmab have common interests and were related companies. Cranbal Investments is a company incorporated in Zimbabwe and its sister company is Silvermine.

Cranbal recently signed a $10 million deal with Samsung Electronics South Africa that will see Cranbal assembling television sets and refrigerators at Msasa, Harare by next year.

The deal will create jobs in the country.