Zimpapers Logo

Business Reporter
Masimba Holdings’ major shareholder, Zumbani capital says it does not have plans to dispose any of its shareholding in the company even after the unbundling of Proplastics.

Zumbani Capital acquired a 47 percent stake in Masimba, formerly M & R, previously held by Trinvest Investments and Murray & Roberts Limited of South Africa.

Speaking at the Imara Zimbabwe conference yesterday, Masimba Holdings chief executive Mr Canada Malunga said the major shareholder; Zumbani capital will retain its shareholding despite the unbundling of Proplastics.

“I would like to advise investors that, as executives we met with the main shareholders particularly Zumbani.

“They indicated that they

are going to be retaining their shareholding in Masimba and Proplastics in the foreseeable future.

“They don’t have any intention of disposing any of their

shareholding,” said Mr

Malunga.

The company this year embarked on a restructuring exercise that saw the group unbundling its plastics manufacturing subsidiary from the construction business.

Mr Malunga said Masimba Holdings management will soon implement a joint venture with a foreign investor and this joint venture will be involved in the reinforcement steel cutting and bending that will enjoy forward linkages with the company’s construction arm.

He said the proposed galvanised plant by the company is set to complement the existing structural steel fabrication that is key for telecommunications and mining clients.

“The company going forward is open to partnerships and joint ventures and recently we went into a 50-50 joint venture with a Mauritian company that saw us commissioning a plant in Willowvale.

“We are also looking

at unlocking value from the company’s land banks through developing residential and

commercial stands while seeking new mergers, acquisitions in the construction and

allied industries,” said Mr Malunga.

Mr Malunga said low levels

of gross capital formation in Zimbabwe’s economy

were reflected in the subdued performance of Masimba

Holdings in the past and the company is bullish of the future prospects.

In terms of the future prospects of growth, Masimba is a stock for the long haul, old national infrastructure such as roads and water reticulation needs to be redone and this presents enormous opportunity for Masimba.

Masimba Group anticipates that its construction order

book will grow steadily and the company was in the throes of negotiations for a $10 million project to be concluded

soon.

The ongoing group restructuring should result in a leaner head office structure, reducing overheads.