Covid-19 threatens CSC multi-million dollar deal closure

TINASHE MAKICHI

The Covid-19 pandemic is threatening the multimillion dollar Cold Storage
Company (CSC) investment deal following revelations that the worldwide lockdown has left engineers and critical staff required for the closure of
the deal stuck in their home countries, Business Times has learnt.

This is the latest setback to the deal which is under pressure from some politicians and employees at CSC that are pushing for the cancellation
of the transaction.

Boulstead CEO Nick Havercroft told Business Times that Covid-19 coupled with the international lockdown has posed a threat to the revival of CSC. This comes as the bulk of the staff expected to be instrumental in
the closure of various aspects will be coming from United Kingdom which is one of the Covid-19 hotspots.

“There is an international lockdown and obviously there are no flights for engineers.
Therefore nobody in their right mind would come here and be put into quarantine for three weeks,” Havercroft said.

He described as “same old rumours” assertions that the British investor
was failing to raise funds for the deal. Boustead has plans to invest US$6m into abattoirs’ refurbishment, canning factory, distribution
infrastructure, working capital and IT systems while US$500,000 plant equipment has since been ordered and paid for.

Boustead will also take over and manage CSC ranches in Maphaneni, Dubane, Umguza, Chivumbuni, Mushandike, Willsgrove and
Darwendale for an initial period of 25 years.

In addition, Boustead will take over and run CSC abattoirs in Bulawayo,
Chinhoyi, Masvingo, Marondera and Kadoma for an initial period of 25 years.
Last year, Cabinet approved a 25 years-long joint venture between CSC and a United Kingdom firm, Boulstead Beef (Pvt) Limited. But there
were concerns the suitor was financially handicapped
after records from the British companies registry showed that Boulstead is a broke shelf company with £2 in its bank accounts as at April 30, 2018.
There are indications that the resuscitation of CSC will go a long way in improving the economy through beef exports as it will unlock value in the
livestock industry.

At its peak, the beef processor and marketer used to handle up to 150 000
tonnes of beef and associated by-products annually and exported to the European Union, where it had an annual quota of 9,100 tonnes of beef.
The company used to earn the country about US$45m per year in beef exports.