MOTEC Holdings (Pvt) Ltd, a subsidiary of the Industrial Development Corporation (IDC), plans to dispose a 55% stake in its subsidiary Amtec (Pvt) Ltd and has invited keen investors to snap up the shares. Nqobile Bhebhe Chief Reporter
Amtec, a retailer and service provider of motor vehicles, and trucks and parts has branches in Bulawayo, Harare, Gweru and Mutare.
This is in line with the IDC’s move to dispose 10 of its subsidiary companies as part of its strategy to be a development finance institution. IDC owns Zimbabwe Grain Bag, Almin Metal industries, Surface Investments, Sunway City, Stone Holdings, Modzone Enterprises, Zimbabwe Copper Industries, Zimglass, Allied Insurance and automotive company Deven Engineering. Once the shares are disposed of, the proceeds would be channelled towards funding IDC new ventures.
“The board of Motec Holdings (Pvt) Ltd, a subsidiary of the Industrial Development Cooperation of Zimbabwe, has resolved to dispose of its 55% subsidiary, Amtec (Pvt) Ltd by way of a share sale.
“Proceeds of the sale will be utilised to fund new ventures in line with the IDC’s mandate that entails establishing new industries and facilitating, guiding and promoting the financing, reorganisation and development of existing industries” part of the notice reads. According to the notice, one of Motec’s co-shareholders in Amtec, Inchape PLC holding 14,9% has made a decision to divest out of Amtec alongside Motec.
“In this regard, the board of Motec has instructed Corporate Excellence to manage the disposal through a competitive tender process,” IDC said.
IDC requires significant fresh capital to recapitalise its operations, but raising the funds has been challenging due to the tight liquidity situation that is pervading the domestic economy.
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The government, which is the major shareholder in the corporation, approved the disposal of the loss-making divisions, which will enable the corporation to raise fresh capital to develop viable business units. In terms of the plan, the IDC intends to sell the subsidiaries to both local and external investors in line with its mandate of developing companies.
IDC is a self-financing, national Development Finance Institution established in 1963 and is wholly owned by the government.
