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What the sources described as “top secret talks” had been in progress “for some months” and the value of the transaction was said to be “around US$5 million”.
“Initially, an Indian investor had won the bid to buy the stake, but the deal flopped after the central bank asked their consultants to revisit the deal and the consortium eventually emerged as the final contender,” said one source on condition of anonymity.

“The figure being talked about is around US$5 million.Though it (the deal)  has not yet been finalised, the funding is almost certain, after a recently formed fund backed by a local building society agreed to promote the transaction,” said another source.

Astra managing director Mr Mac Mazimbe could neither confirm nor deny the reports when contacted for a comment on Tuesday. He said he had “no mandate” to talk to the Press on shareholder issues.

Astra chairman Dr Charles Utete could not be reached for a comment by the time of going to press yesterday. But early this month, the company said the process by the major shareholder to dispose of the entire stake in the company was on-going and could be concluded in the second half of this financial year.

The Astra directors include Dr Utete, Mr Herbert Nkala and OK Zimbabwe Ltd chief executive Mr Willard Zireva. The company’s and its subsidaries’ main business is the manufacturing and distribution of surface coatings, chemicals trading and steel engineering supplies. Astra traded at US5c on the Zimbabwe Stock Exchange yesterday.

The RBZ, through a vehicle, Finance Trust of Zimbabwe, is in the process of selling non-core assets. In January this year, Zimplow Limited completed the acquisition of the Reserve Bank’s 58  percent in Tractive Power Holdings, resulting in TPH becoming  a wholly-owned subsidiary of Zimplow.

Tractive Power demerged from the Astra group in 2001 when 33 percent of the group was floated.
RBZ is also the major shareholder in Tuli Coal (Pvt) Limited, controlling 70 percent and 100 percent of another mining operation, Carslone Enterprises Limited.