CTC ratifies three mergers

The Competition and Tariff Commission (CTC) ratified three transactions involving crocodile farmer, Padenga holdings, platinum miner, Mimosa and ailing South Africa construction concern Group Five, at its last board meeting held this month, NewsDay Business has established.

BY FIDELITY MHLANGA

According to documents seen by this publication, CTC ratified a deal between Mimosa and prospecting concern, Southridge, in which the latter is disposing of mining claims for US$4,5 million.

“Southridge resolved to sell certain KV and SR Mining claims to Mimosa for a purchase consideration of US$4,5 million. The mining claims are within the Wedza sub-chamber of the great dyke adjacent to claims owned by Mimosa.

Both the KV and SR claims constitute 8,8% of the total area currently held by Southridge Limited. The KV and SR claims will allow Mimosa to increase its mining capacity,” the document reads.

According to the document CTC said the rationale behind the ratification of the deal was that the acquisition of the mining claims would help Mimosa to maintain existing production levels due to a boost in claims as existing mining claims were depleting.

Southridge is a prospecting company and holds some mining claims which lie adjacent to claims owned by Mimosa.
Mimosa is jointly owned by Sibanye and Impala Platinum of South Africa.

According to the document, CTC also sanctioned a transaction in which crocodile farming company Padenga sought to acquire a controlling 50,1% shareholding in Dallaglio Investments.

Locally incorporated, Dallaglio owns Pickstone Peerless Mine near Chegutu and Eureka Mine near Guruve.

It is a holding company with 100% ownership of Beckiage Investments (Pvt) Ltd and Delta Gold (Pvt) Ltd, consisting primarily of the Pickstone Peerless and Eureka Mining operations.

Details of the deal are that Padenga will subscribe for 50,1% shares in line with the terms and conditions outlined in the agreement.

“The purchase consideration will be invested entirely in expanding current Dallaglio operations, and all other existing Dallaglio shareholders will remain invested in the company. As the new majority shareholder in Dallaglio, Padenga will appoint the majority of directors on Dallaglio’s board,” reads the document.

“Padenga intends to diversify its exposure from reliance solely on the production of crocodilian skins and reduce this concentration of risk through diversification into alternative export orientated businesses. It has identified the gold mining sector as attractive from a long-term perspective, particularly, with respect to the historic global gold demand and capacity for gold mining to earn hard currency.”

In addition, the competition watchdog authorised the acquisition of 100% shareholding of Intertoll Zimbabwe Proprietary Limited By the Mabentu Consortium on the basis that Intertoll was ailing and in need of financial rescue. CTC said its resuscitation is beneficial to Intertoll Zimbabwe and to the Zimbabwean economy at large.

“Mabentu Consortium is made up of three companies — MTC, Magareng and LSNM, all registered in South Africa. MTC will be the largest shareholder in the Mabentu Consortium with 50%. MTC is a recently formed trading and consulting company. Magareng and LSNM is a dormant company,” CTC said.

Details of the merger are that Group Five intends to dispose of 100% of its shares in Intertoll Zimbabwe. Intertoll Zimbabwe will be acquired by a consortium comprising MTC acquiring 50%; Magareng 20%; and LSNM acquiring 30% of the shares. The consortium is collectively referred to as Mabentu Consortium.

Intertoll Zimbabwe is a wholly-owned subsidiary of Group Five, a South African registered company conducting operations through a branch office in Zimbabwe. It operates and maintains toll road infrastructure. Intertoll Zimbabwe operates and maintains approximately 822km of motorway in Zimbabwe, manages nine toll plazas and performs routine road maintenance in
Zimbabwe.

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3 Comments

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