Cairns exits judicial management

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The High Court has sanctioned the removal of agro processors Cairns Holdings from judicial management, paving the way for a new investor to take over.

BY BUSINESS REPORTER

The sanctioning was done last Wednesday and investment holding firm Takura Capital moved in, ending the judicial management of Reggie Saruchera of Grant Thornton.

Takura Capital partner Tafadzwa Nyamayi told NewsDay yesterday that the company had roped in former Unilever boss Nancy Guzha as chief executive officer-designate.

“She is on site effective the day the company was removed from judicial management,” Nyamayi said.

Takura Capital now has over 90% shareholding in Cairns after acquiring the stake owned by the Reserve Bank and other shareholders except that held by Cairns Holdings Workers’ Trust.

Nyamayi said Takura Capital has injected money to pay off creditors in line with the scheme of arrangement.

According to the scheme, Takura Capital will invest $7 million into the business on signing of the agreement and the other $7 million will be paid to the scheme participants. Saruchera said in July that Takura Capital would inject $2,7 million and another $4,5 million to get the company running at full capacity.

Takura Capital was selected as the winning suitor in May. In July, Cairns shareholders and creditors voted for the takeover of the company by Takura Capital.

Cairns Holdings was placed under provisional judicial management in 2012 and final judicial management in February 2013, due to insolvency. It delisted from the Zimbabwe Stock Exchange in 2013. Its two subsidiaries are Cairns Foods Limited and ME Charhon.

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