GBHL’s share acquisition provides opportunity for growth and productivity

Author Name
Respect Gwenzi
Stock Market 11 months ago

“This divesture will usher in a white knight investor with demonstrable capacity to revamp its business leading to growth, productivity, employment generation and social development of its stakeholders, especially the employees”

Harare – Conveyor belt manufacturer, General Beltings Holdings has disclosed that it has received an offer from Jemaimah Synergies (Pvt) Limited to purchase an aggregate 43.22% of the issued share capital currently owned by SMM Holdings (Pvt) Limited.

SMM Holdings which is currently under administration, core business is that of asbestos mining and marketing in the Mashava and Zvishavane areas.

In an announcement to shareholders on Friday, GBHL said SMM intends to divest from ownership of the GBHL shareholding, which is non-core and the Offer is made on a willing seller, willing buyer and for value basis.

“…the Acquirer (Jemaimah Synergies) has made budgetary provisions to avail up-to the equivalent of US$300,000.00, to finance phase one of the turnaround plan of GBHL”, the Company said.

The price for the Acquisition Shares has been settled at ZWL60 million.

The Company said the Acquirer intends to immediately after the acquisition of the shares engage shareholders in recapitalisation of the Company and turnaround its financial prospects.

This will be achieved through consolidation of the current product range, to enhance competitiveness, thereby increasing market share, introducing equipment and consumables products offering, targeted at capacitation of small-scale chrome and gold mining operations, introducing structured finance solutions to provide better technically efficient solutions to the production processes and distribution network, and introducing training programmes to ensure production consistency and general technical competency among others.

“The board of directors of the Company has considered the Proposed Transaction, the Acquirer’s stated strategy, its benefits to the Company and is confident that it can work with Acquirer to realise the benefits,” the Company said.

“The Board is of the opinion that the rationale for the Proposed Transaction is fair, and is in the best interests of the Company and its shareholders”.

According to the Company, the placing of SMM (major shareholder) under administration and experiencing challenges with funding its core business activities, has left GBHL orphaned and not been able to receive much shareholder support for its operations over an extended period of time.

Accordingly, GBHL has not been able to recapitalise, update its technology, develop its products and explore new markets and opportunities.

“This divesture will usher in a white knight investor with demonstrable capacity to revamp its business leading to growth, productivity, employment generation and social development of its stakeholders, especially the employees,” the Company said.

Equity Axis News

Markets ● 4 days ago
Fair Value Adjustments Wipe-Out First Mutual HY-21 Profits

Half-year results for the property and insurance Group largely reflected improvements from prior year performance. GWP ↑ 71%Rental Income ↑ 53%Profit ↓ 121% The Group’s Gross Premium Written grew to ZWL 5.4 billion in the period, a 71% inflation-adjusted increase. Despite marginal investment property gains recorded in US$ terms, a ZWL 1.6 billion fair value loss was incurred after conversion of...

Markets ● 1 week ago
Mixed Fortunes In NMB's HY-21 & What Lies Ahead

ZSE-listed financial services firm NMB Bank performed well in the six-months ended 30 June 2021, as net-income grew 105% to settle at ZWL 716.2m from ZWL 348.8 million recorded in the previous comparative period. The remaining six-month period of the year however remains cloudy, with internal uncertainties stemming from the Bank's tech investments. Fee & Commission Income ↑ 128% FX Gains ↑ 74%...

Markets ● 1 week ago
Low Forex Supplies Threat To Proplastics Inventory Management

The ZSE’s piping specialist managed to double revenue from the previous half year period, overturn a loss and maintain a solid financial position. Revenue (infl.adj) ↑ 120% Profit ↑ 197% Despite the generally positive set of financials recorded in the period, the Group continues to face logistical constraints stemming from foreign currency shortages. In its most recent set of fina...

Stock Market ● 2 weeks ago
ZSE halts bloodbath as market heavies recover

The ZSE somersaulted almost erasing its prior session loss as demand recovered in Tuesday’s trades. The All Share Index notched by 0.67% to close at 6645.03 points. Gains were stimulated by market heavies after a huge jump of 1.4% which outweighed the 0.87% decline in penny stocks. The positive sentiment was spread across bourses as Padenga firmed by 20% on the VFEX after trading a total of 5...

Markets ● 2 weeks ago
All-Round Growth Recorded in Latest Cassava Trading Update

Cassava Smartech's performance in the quarter ended 31 August 2021 was well-rounded and reflected significant growth from the previous year’s comparative period. Group Revenue ↑ 70% Wallet Funding ↑ 54% Steward Bank Revenue ↑ 300% Group revenue rose by 70% in the period and was driven by higher transaction activity than 2020’s comparable period. Similarly, the Group reported a 63% revenue...