Tinashe Makichi : Business Reporter
The Industrial Development Corporation has shortlisted four investors for the takeover of its 76 percent stake in Chemplex Corporation with the aim of raising $60 million to recapitalise the company. IDC owns 100 percent stake in Chemplex which is the largest fertilizer and chemical manufacturing company in Zimbabwe.Chemplex Corporation has six companies namely ZimPhos, Dorowa, Chemplex Marketing, Chemplex Animal and Public Health, GD Haulage and G and W Industrial Minerals.
Chemplex Corporation has however since dollarisation been facing viability challenges due to the lack of working capital to recapitalise antiquated plant equipment across its investment portfolios.
IDC chairman Herbert Nkala confirmed to the Herald Business that the state owned investment vehicle had gone through some due diligence to settle at four investors.
“At the start of the process 36 investors expressed interest but by process of elimination and due diligence we have come down to four,” said Mr Nkala.
Well-placed sources said that Windmill Private Limited through its investment company and a local capital funding are among the companies shortlisted for the stake. If Windmill gets the stake, its most likely to partner ZFC Limited to form a stronger company capable of fighting fertiliser imports,” said the source.
Chemplex mines and beneficiates phosphate rock used in the manufacture of fertilisers and also manufactures sulphuric acid which is then converted to other industrial chemicals.
Chief executive Samson Kachere told the Herald Business last year during a tour of Dorowa Minerals that Chemplex requires $72 million over the next five years to ramp up fertiliser production to enable it to meet the country’s demand.
“The total capital required for the project is $60 million, the dilution level will depend on the valuation of Chemplex, the IDC is prepared to be diluted down to 24 percent from 100 percent,” said Mr Kachere last year.
IDC has vast investments covering vehicle assembling, cement and chemical manufacturing, real estate, fertiliser production, edible oils manufacturing, mining, industrial engineering among many others.