Bright Madera Senior Business Reporter
ZIMPLOW Limited is seeking to acquire the entire Reserve Bank of Zimbabwe stake in listed farm implements manufacturer Tractive Power Holdings. The acquisition is subject to shareholders’ approval
at the company’s Extraordinary General Meeting scheduled for the end of the month.
Company directors are also seeking permission to raise US$11,2 million by way of a renounceable rights offer of 224 185 085 ordinary shares at US$0,05 per share.
The rights issue ratio will be two ordinary shares for every three ordinary shares already held by company shareholders.
Shareholders are expected to approve the acquisition of 88 526 968 ordinary shares, representing 57,21 percent interest at a price not exceeding US$0,11 per share.
Zimplow already controls 16 percent of TPH after it swooped on 27,2 million shares valued at US$3 million through a special bargain on the ZSE.
As a special resolution the company is seeking to increase its authorised share capital from 500 million ordinary shares of US0,01c to 800 million shares of US0,01c.
Company directors also want to place the unissued shares under their control.
Last year, the central bank resolved to dispose of its shares in non-core businesses to concentrate on its core functions as a monetary authority.
The proceeds from the share sale would be used to finance debt payments. Apart from Tractive Power, the RBZ, through its investment vehicle Finance Trust of Zimbabwe, holds 64,9 percent in listed Astra Holdings and 64 percent of Cairns.
Tractive Power demerged from the Astra Group in 2001 when 33 percent of the group was floated.
Astra has interests in paint, steel and chemicals through its 50 percent joint venture with Hippo Valley while Tractive Power has Barzem, a joint venture with Barloworld South Africa, Farmec and Puzey & Payne.
The group also controls Northmech Zim through a joint venture with Invicta Holdings of South Africa.
RBZ is also the major shareholder in Tuli Coal (Pvt) Limited, controlling 70 percent and 100 percent of another mining operation, Carslone Enterprises Limited.
The central bank is also disposing of Homelink, a housing development scheme and a money transfer agency.
Sirtech Limited, a science research and industrial development firm, in which RBZ holds a 65 percent stake, is also up for grabs.
The disposal of a 50 percent stake in Transload, which deals with bio-diesel, completes the list of the seven companies up for sale.