PHILLIMON MHLANGA
Grant Thornton Chartered Accountants, one of Zimbabwe’s leading business advisory firms, is courting suitors to inject fresh capital into Victoria Foods and Amtec, two embattled firms which are currently under receivership.
Speaking to Business Times this week, judicial manager Reggie Saruchera could not disclose how much was needed to resuscitate Victoria Foods and Amtec. Recapitalisation options would include joint ventures or partnerships as well as toll manufacturing.
“Tenders are invited from interested parties to invest in Victoria Foods and Amtec,” said Saruchera, managing partner at Grant Thornton.
“This invitation is not a prospectus and does not constitute or form part of any solicitation or invitation or any offer to the public to purchase Victoria Foods and Amtec or to subscribe to any ordinary shares or any other shares in Victoria Foods and Amtec. Parties interested in investing in these companies are required to register their interests with transaction advisors at Grant Thornton Chartered Accountants on or before August 24, 2018.”
It is understood, however, that about $6 million is required to recapitalise Victoria Foods with projected revenues expected to progressively rise from $25 million next year to $40 million by 2020, according to well-placed sources privy to developments at the company. Victoria Foods’ installed milling capacity is 147 000 tonnes per year.
It could not, however, be immediately established how much Amtec requires as fresh capital.
The latest development comes at a time when Zimbabwe is currently facing a challenging environment as most companies are saddled with high production and administrative costs.
The economic challenges of the past 10 years have seen many companies in Zimbabwe closing shop, throwing thousands of workers onto the streets.
Unemployment in Zimbabwe is currently hovering above 90 percent, with many of the jobless eking out a living in the informal sector.
Victoria Foods, a milling giant of yesteryear, which is a subsidiary of agro-industrial concern CFI Holdings was forced to lay off its employees after it was placed under judicial management in 2016 while Amtec, a motor industry subsidiary of State-owned Industrial Development Corporation (IDC), which 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, was also put under administration following an application by its creditors.
The two companies, Victoria Foods and Amtec, were put under receivership to allow for debt restructuring, re-organisation and recapitalization.
They both recently experienced temporary shut downs following disputes between workers and management over payment of salaries.
