“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.
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