TWO local companies seeking a shareholding in Deven Engineering had their bids thrown out after they failed to offer the “best value for money” for the coach builder.
Deven’s core competence is trucks and bus body manufacturing done on rolling chassis or from knocked down kits. The company can build trailers, tankers and specialized vehicle bodies such as compactors, dumpers, tippers, refuse trucks and repairs.
The Industrial Development Corporation of Zimbabwe (IDCZ) shortlisted Glenwood Investments and a company linked to Doves Funeral Assurance for its 100 percent shareholding in Deven in a bid to revive its fortunes. But in a letter to Glenwood, the IDCZ, a State-owned entity, advised all the bids had been turned down.
“We wish to inform you of the outcome of the evaluation and adjudication of your expression of interest and your submitted bid to purchase shares in Deven held by ourselves, the Industrial Development Corporation conducted in accordance with the law,” wrote IDCZ.
“The evaluation and the adjudication process has since been concluded by the IDCZ and unfortunately your bid was not successful.”
“Although the bid was substantially responsive, it failed to offer the best value for money commensurate with the asset under disposal in the public interest. No other bidder was successful.”
Following the initial short-listing of the two bidders for the coach builder, the IDCZ restarted the process of evaluating investments bids for Deven Engineering as well Willowvale Motor Industries (WMI) after the appointment of the new board in September last year.
Three companies including Croco Motors and a leading tobacco merchant had been selected for WMI. Having been formed over 50 years ago, the IDCZ has transformed and built an expansive investment portfolio, with the core being in the sectors of motor and transport, fertiliser and chemicals, cement and agro-processing. It also has investments in textiles, packaging, insurance, real estate.
Its subsidiaries include, Chemplex Corporation, Sunway City, Industrial Sands while associate companies are Olivine Industries, SINO Cement, Surface Wilmar Zimbabwe, Zimbabwe Grain Bag, Afroran Spinners.
In 2018, the Government approved restructuring strategies of IDCZ subsidiaries and associate companies through the State Enterprises and Parastatal Reform Framework.
The restructuring is not only confined to total disposal subsidiaries and associate companies, but also entails liquidation, privatisation and partial privatisation. Some of the IDCZ subsidiaries that have been disposed of so far include 51 percent shareholding in Almin Metal Industries and 49 percent interest in Stone Holdings.
Zimbabwe Copper Industries was liquidated.