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Business Reporter
Local yeast manufacturer, Anchor Holdings is in negotiations with French yeast and fermentation products manufacturer, Lesaffre Group over the acquisition of a 40 percent stake in the company.The transaction will see the French company injecting fresh working capital to boost operations.

Anchor Holdings chairman Mr Mike Nyabadza yesterday confirmed the negotiations but refused to furnish this publication with details of the proposed transaction.

“Yes I can confirm that we are in negotiations with an investor and no conclusion has been reached yet in terms of shareholding and financial terms. At the moment it is premature for me to give you any details,” said Mr Nyabadza.

However, sources close to the developments told The Herald Business that the transaction has been agreed on and the French company will be starting operations anytime soon.

“The French company recently signed an agreement with Anchor Holdings in a transaction that will see Lesaffre acquiring 40 percent stake in Anchor Holdings.

“Such a transaction will allow the company to raise about $5 million for the recapitalisation,” said the sources.

The sources also said a major management reshuffle looms as the French company plans to set up its own management team.

“A major management shake-up is imminent as you know whenever a foreign firm takes over, they come with their own management,” the sources said.

The acquisition of Anchor Holdings will lead to an injection of capital and is set to increase the company’s annual production to 10 000 tonnes, enough to ensure it adequately supplies the local as well as the export market.

Lesaffre is a family run group founded in the North of France. It has become a global reference as a multi-site, multicultural player.

With €1,5 billion in turnover in 2014, Lesaffre employs 7 700 workers divided between more than 80 subsidiaries in 40 countries. Our products are sold in more than 180 countries.

“From family-owned factory to international group, Lesaffre has built and strengthened itself, by passing on expertise that it grows from generation to generation, and continuously revitalising its capacity for innovation.

“This quest for progress led Lesaffre from our bases in northern France — to which we have remained faithful on a mission to conquer every continent,” said Lesaffre.

Last year Anchor Holdings lobbied Parliament for a three-year ban on imports in a bid to save the business from collapse owing to the threats of cheap imports.

The country requires 5 400 tonnes of yeast per annum and Anchor has installed capacity to produce 7 000 tonnes but is currently operating at 60 percent.

Anchor Holdings currently supplies yeast to baking, brewery and ethanol industries.