Zimplow moves to acquire Tredcor and Birmingham investments from UniFreight

Author Name
Respect Gwenzi
Analysis 3 weeks ago

Harare – Agro-industrial firm, Zimplow Holdings Limited has offered to acquire 100% of Unifreight Africa Limited’s shareholding in Birmingham investments and the 51% in Tredcor Zimbabwe held by Unifreight’s subsidiary Clan Services (Private) Limited in exchange for a total of 34 174 010 newly issued ordinary shares in the company.

Unifreight Africa Limited is a transport holding company in Zimbabwe, offering services in logistics, freight and passenger services to clients in sub-Saharan Africa.

Zimplow which already operates five key divisions within its group namely Barzem, Farmec, Mealie Brand, CT Bolts and Powermec is looking to fully acquire Birmingham Investments a real estate holding company which owns a number of office blocks and warehouses for a consideration of ZWL$57,984,401.88 to be settled with 15,774,446 newly issued ordinary shares in Zimplow such that, Zimplow will become the sole shareholder of Birmingham Investments and Unifreight will become a shareholder of Zimplow holding a total of 15,774,446 ordinary shares in Zimplow.

Furthermore, they offered to acquire Clan Service’s 51% shareholding in Tredcor Zimbabwe for a consideration of ZWL$67,339,926.99 to be settled with 18,399,564 newly issued ordinary shares in Zimplow such that Clan Services will become a shareholder in Zimplow, holding a total of 18,399,564 ordinary shares in Zimplow.

Tredcor, which was established in 1997, trades as TrenTyre Zimbabwe, exclusively distributing GoodYear tyres in Zimbabwe and is also involved in tyre retreading, fleet tyre management, tyre filling services and distribution of various brands of new vehicle tyres.

For the year ended 31 December 2019, Tredcor posted turnover of ZWL$81.68 Million, which was an increase from ZWL$53.6 Million in 2018 on an inflation adjusted basis. Operating Profit was ZWL$27.02 Million in 2019 up from ZWL$9.08 Million in the previous year.

UniFreight is considering these transactions on the basis that they will lead to the utilization of vacant Birmingham Property in a Value Adding Venture.

“The proposed Transaction presents a sustainable solution to current occupation challenges by providing a taker with value adding projects,” the company said.

Furthermore, it will result in the transformation of Illiquid Investments into Tradable ZSE Listed Shares.

“The proposed Transaction will see Unifreight moving from holding shares in private companies to holding shares in a fairly liquid ZSE listed company,” they added.

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