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Tinashe Makichi Business Reporter—

The Industrial Development Corporation says it will consider only investors with running industrial operations to acquire controlling stake in its chemical and fertiliser manufacturing unit, Chemplex Corporation.This decision rules out investors such as fund managers, who will not be eligible to participate in the bid selection process.

The State investment vehicle had previously short-listed four investors for the purchase of 76 percent stake in Chemplex Corporation with the aim to raise $60 million meant for recapitalisation of the company.

IDC senior manager (Development Finance) Tranos Ngwebu yesterday confirmed to The Herald Business that the criterion for selecting investors for the generality of IDC’s portfolio now focuses on engaging industry players and not fund managers.

“The criterion for the selection of investors for the generality of IDC business units are now hinged on engaging industry players and we reached a consensus that this move is necessary for the Zimbabwean Economy to grow.

“We reached this position after realising that engaging industry players will definitely bring in new technology and skills beneficial to the growth of all IDC units and not Chemplex alone.

“This is the criterion that IDC is pursuing at the moment and it is not the only criteria aimed at reviving the corporation.

“The problem usually associated with engaging fund managers is that they just invest into the company with the aim to recoup their investment and sell the business. Usually their investments are short-term and that is not what we are looking at,” said Mr Ngwebu.

This new benchmark will see the state investment vehicle only considering industrial investors for all investments into its companies.

IDC owns 100 percent stake in Chemplex, which is the largest fertilizer and chemical manufacturing company in Zimbabwe.

According to sources close to the developments, Windmill Private Limited through its investment company is one of the investors short-listed to acquire the stake in Chemplex Corporation while another prominent local fund manager (name withheld) reportedly interested.

“The issue of securing an investor for Chemplex at the moment is complex because there are a lot of issues to be considered before a concrete decision is made. Rumour says Cabinet has stressed that it only wants industry players for the Chemplex stake.

“Chemplex is a complex organisation comprising different units including endowment issues around Dorowa Minerals.

“There is need for a proper valuation too before IDC could commit to any investor either among the short-listed ones or the other to come in future,” said an IDC source who could not be named.

The diversified fertliser manufacturing company has since dollarisation been facing viability challenges due to lack of working capital and availability of antiquated plant equipment across its investment portfolio.