BLUE Ribbon Industries (BRI) is yet to submit its papers to the Competition and Tariff Commission (CTC) to regularise its takeover by Tanzanian company, Bakhresa Group.
BY VICTORIA MTOMBA
CTC assistant director Benjamin Chinhengo said the commission had returned to Bakhresa its forms which were not completed in full.
“We sent back the merger notification form for them to properly complete it two months ago. We are awaiting their resubmission of the same. We wanted them to complete all sections of the form at the same time providing supporting documents,” Chinhengo said.
An official from BRI said he could not divulge much to NewsDay as the matter was being handled by the judicial managers.
“I cannot say much as the matter is being handled by the judicial managers. Asking about the performance of Blue Ribbon Industries is too early. We just took over management and doing maintenance. We are still at the preliminary stage of operating,” the official said.
Bakhresa took over BRI in January and invested $20 million.
The investor is expected to bring in $40 million into BRI and the injection is set to increase production for the milling plant for both maize and flour.
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Bakhresa also paid some creditors as well and will own 100% of the company and will give 10% to staff and sell part of the stake to locals until the 51: 49% threshold has been met in compliance with the country’s empowerment legislation.
The Act stipulates that at least 51% of all foreign-owned companies operating in the country should be in the hands of locals.
Bakhresa has operations in Burundi, Kenya, Malawi, Mozambique, Rwanda, Uganda and Seychelles.
BRI closed down in 2012 due to funding constraints and was placed under judicial management to revive its operations. Bakhresa was selected in 2013 when the company registered for bidders for BRI and in that same year it applied for the indigenisation approval.
The indigenisation processes were approved in May 2015 and re-negotiations with secured creditors began in July 2015.
BRI is known for its Chibataura and Ngwerewere mealie-meal brands and Blue Ribbon flour.
