THE Industrial Development Corporation of Zimbabwe (IDCZ) is in talks with prospective investors who have expressed interest to invest and take up part of or all of its shareholding in its subsidiaries, an official has said.
BY FREEMAN MAKOPA
“Five companies — Deven Engineering, Allied Insurance, Zimbabwe Grain Bag, Chemplex Corporation Limited and Stone Holdings — are set to be invested in and we are also going to sell some of the company’s shares,” IDC spokesperson Derek Sibanda said.
IDCZ is looking forward to dilute 100% of its shareholding in Chemplex Corporation Limited on a success basis and has previously tried to sell Chemplex before and in 2015 engaged finance advisors Imara to lead the sale.
Sibanda was optimistic the deals would be concluded soon and this will enable the corporation to refocus and effectively deliver on its mandate of establishment and development of industries.
“The restructuring of the IDCZ portfolio will enable the corporation to refocus and effectively deliver on its mandate of establishment and development of industries as provided in its enabling Act and to also focus on its development finance role as already approved by Cabinet in its turnaround and restructuring plan,” he said.
One of the companies, Chemplex Corporation beneficiates phosphate rock used in the manufacture of fertilisers and produces sulphuric acid which is converted to industrial chemicals.
It currently controls about 70% of the fertiliser industry and the whole phosphates value chain. But the company has been hit by financial challenges, which have also affected its subsidiaries such as Dorowa Minerals.
Other subsidiaries of the company are Chemplex Animal and Public Health, Chemplex Marketing, GD Haulage and ZimPhos.