IDC in talks over Allied Insurance stake

IDC in talks over Allied Insurance stake Mr Sibanda
Mr Sibanda

Mr Sibanda

Walter Muchinguri Assistant Business Editor
The Industrial Development Corporation is in negotiations with a Kenyan company over its 75 percent stake in Allied Insurance.

IDC public relations advisor Mr Derek Sibanda declined to name the organisation but indicated that they had signed a non disclosure agreement with the company.

“We are actively pursuing this expression on interest and we hope that it will result in a deal,” he said.

The IDC has been exploring various options with regards to the disposal of its controlling interest in the insurance company, including merging the company with a bigger insurer.

“We believe that we will get a buyer because the company is in a sound financial position and is compliant with the minimum capital requirements for insurance firms,” he said. Allied Insurance is one of several subsidiaries that IDC has earmarked for disposal that include the Stone Holdings, Amtec, Deven, G and W, Almin Metal Industries, Surface Investments, National Fertiliser Industries, Zim Copper and Zimbabwe Grain Bag.

The disposal of the subsidiaries is part of a three pronged strategy by the IDC to reduce, sell-off and entrench its positions.

In addition IDC was also looking at diluting its shareholding in large investments comprising Chemplex Corporation, Zim Glass, Olivine Industries and Willowvale Mazda Motor Industries need refurbishment capital.

Money raised from the sale of the asset was expected to assist in reviving and boosting operation at struggling companies that are of strategic importance to the economy such as Caps Holdings, Olivine, Zimphos and Zimglass.

The money was also expected to be used to finance major projects such as Sunway City, Detema Ceramics, Lupane Gas Company, which the State owned industrial development company has short-listed for further development.

IDC is also pursuing a number of endowment based value addition initiatives such as batteries from lithium, catalytic converters from platinum, stitched drilling tools and wire from industrial diamonds, fertiliser and coal bed methane among others.

Already, it has partnerships with Japan in motor industry, China in cement, South African in extrusions, Malaysia in real estate, India and Singapore in food processing.

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