PG Industries Zimbabwe Limited has disposed of its 27,9% stake in Manica Boards and Doors, leaving Old Mutual Zimbabwe Limited and PG Bison Africa Limited as the shareholders of the company.
Business Reporter
This follows the approval by shareholders at an extraordinary general meeting (EGM) held in Harare yesterday, giving the nod to the board to dispose of the company’s non-core assets valued at $5,1 million.
The move would reduce the company’s short-term debt.
Before the transaction, Old Mutual Zimbabwe had 40% and PG Bison Africa Limited had 32,1%.
The properties that have been designated for disposal include residential stands and undeveloped residential stands, commercial properties (undeveloped) and industrial properties.
According to the circular to shareholders, PG Zimbabwe said the total value of commercial properties (undeveloped land) was at $67 000 and industrial properties $4,1 million.
Residential properties that include undeveloped ones are worth $904 000.
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Speaking on the sidelines of the EGM, the company’s chief executive officer, Hilary Munyati, said the two Manica Board and Doors properties and the old PG Safetyand Glass in Mutare were valued at $3 million.
“We are waiting for the approvals for the disposals of the properties.
“But Manica Boards and Doors will be concluded in less than three months,” he said.
The company said the application of the proceeds would reduce short-term borrowings and the gearing ratio to sustainable levels.
In a circular to shareholders, PG said its total debt would be reduced by $4,5 million to $6,3 million while the outstanding $5,5 million was in the form of a five-year debenture maturing in December 2015.
