Amtec up for sale

Amtec up for sale
Published: 06 May 2014
Industrial Development Corporation of Zimbabwe (IDCZ) has put its subsidiary Amtec Private Limited, up for sale.

The Board of Motec Holdings, a subsidiary of IDC yesterday invited potential local and foreign investors to purchase through a share sale, a 55% stake it holds in the motor company.

The board said proceeds of the shares would be used to fund new ventures in line with the IDCZ's mandate of establishing new industries and facilitating, guiding and promoting the financing, reorganisation and development of existing industries.

It said one of Motec's co-shareholder in Amtec, Inchcape plc holding 14,9% had also made a decision to divest out of Amtec alongside Motec bringing the total shares available for sale to 69,9%.

The disposal of the shares would be done through a competitive tender process and for the execution of the bid process Motec has appointed Corporate Excellence as financial advisors to manage the bidding process.

Amtec is an IDCZ motor industry subsidiary that focuses on retail and service provision of motor vehicles, trucks and parts with three renowned franchises, five branches located in Harare, Bulawayo, Gweru and Mutare.

The bids are expected to be in by 6 June, 2014.Last week, IDCZ put also put Deven on the market.  In an interview yesterday, IDCZ general manager, Mike Ndudzo said the company board had voted for the disposal and dilution of subsidiary companies to realise some capital value out of the companies.

"We are going to raise equity capital in order to reduce corporate debt through sale of existing shares to existing partners or new investors.

"IDCZ is self-financing and by disposing of these companies we hope to establish a national development finance institution that identifies and develops industrial project opportunities into commercially viable ventures in partnership with local, regional and international investors," Ndudzo said.

Ndudzo said the recovered capital, complemented by bonds and long term capital would be used to fund the transformation, so that IDCZ becomes the dynamic driver for industrial development.

Other IDCZ subsidiaries to be disposed include, Zimbabwe Grain Bag, Almin Metal industries, Surface Investments, Sunway City, Stone Holdings, Modzone Enterprises, Zimbabwe Copper Industries, Zimglass, Allied Insurance with automotive company Deven Engineering already under bid for sell.

Ndudzo also said in some situations a dilution of not less than 26% and no more than 49% through strategically fit investors would be allowed especially in the situation for Chemplex Corporation and Olivine Holdings.
- Zim Mail
Tags: Amtec, IDC,

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