Zimbabwe: Zumbani Capital acquires 47% of Murray & Roberts subsidiary
Private equity group, Zumbani Capital, had acquired a 47 percent shareholding in Masimba, formerly Murray & Roberts Zimbabwe, it was announced on yesterday. The stake was acquired at 1.47 US cents a share, which is a 79 percent discount to the then trading price of 7 US cents a share, according to the Zimbabwe Independent. The stake in Masimba was previously held by Trinvest Investments and South Africa’s Murray & Roberts, one of the biggest construction companies in SA.
Zimbabwe Independent quoted Zumbani Capital’s Sammy Sithole, as saying: “I am excited about the prospect as it brings together the appropriate mix of Zimbabwean talent and offshore capabilities that are key to enabling the group to prosper and fully exploit opportunities in Zimbabwe and the region.”
He said told the newspaper that his company would explore regional opportunities even in South Africa where it could easily link these up with Zimbabwe.
South Africa’s Murray & Roberts executive, Yunus Karodia, said they offloaded M & R Zimbabwe because the unit was more focused on “manufacturing rather than the group-wide mainstay” on construction.
“It no longer fitted with the group’s expansion plans into Africa and the Middle East. However, we sold our stake to investors whom we believe have the capacity to carry the group into the future and create shareholder value,” Karodia told Zimbabwe Independent.
Masimba CEO Canada Malunga told Zimbabwe Independent there was no translation for the company except that it pointed to remarkable reputation and excellent service delivery.
Source: Ventures Africa