Published: 04 March 2014

The Commercial Bank of Zimbabwe (CBZ), which is the current majority shareholder in bread maker, Lobels says about three investors have expressed interest to buy the company.

CBZ Group chief executive officer John Mangudya said Lobels which escaped closure in 2012 was now competitive and buyers were falling over each other for the company.

He would not reveal the identity of the suitors or the value of the company, preferring only to mention that the highest bidder would land it.

Speaking on the sidelines of an analyst briefing of the CBZ banking group's 2013 financial results in Harare on Wednesday, Mangudya revealed that the bread maker was now operating at 70% capacity utilisation.

"Lobels was nearly liquidated 2012 but to date, I can report to you that the company is at 70% capacity utilization. It is now competitive.

"I am someone who is very positive and optimistic no matter how negative people maybe. We were one of the few who decided to assist Lobels but now look at it now we have three investors that have approached us to buy the company," he said.

Five local banks, FBC Bank, CBZ Bank, NMB Bank, Metbank and Capital Bank, who were owed a total of $14 million by the breadmaker, took over the company last year to settle their debts and save it from eventual collapse.

CBZ is now the major shareholder in Lobels after a consortium of local banks, once creditors of the firm, injected $4,5 into the then struggling bread-baking company.

Now rehabilitated, lobels is battling to get back its market share, having lost ground to Innscor's Bakers' Inn and Proton Bakeries.

Lobels on its pick days sold 400 000 loaves a day.
- zimmail

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