TINASHE MAKICHI
Potential investors have submitted low bids for Industrial Development Corporation of Zimbabwe (IDCZ) subsidiaries throwing into disarray plans by the State-owned entity to dilute its shareholding, it has emerged.
IDCZ wants to dilute its shareholding in its subsidiaries across the country, including Chemplex Corporation, Willowvale Motor Industries, and Deven Engineering among other notable investments in the manufacturing sector on the market.
But, the IDCZ chairman, Winston Makamure told Business Times this week that the interested investors’ offers were below the expected value.
“The biggest challenge has been the values of the offers by investors that have been way below the reserve value, the price for the shares and or assets of the companies,” Makamure said.
Recently, a South Africa-based fertiliser manufacturer, Foskor, showed interest in taking up a significant shareholding in Chemplex Corporation.
But, the bid was not accepted by IDCZ.
Another investor, the Russian billionaire, Dmitry Mazepin also visited Zimbabwe with an intention to look at the possibility of investing in Chemplex Corporation.
However, Makamure said: “Nothing formal ever came to IDC about the Russian interest.”
IDCZ has also been hunting for investors to take up shareholding in Willowvale Motor Industries and Deven Engineering as the state-owned investment vehicle looks at focusing on its new development financing role.
In collaboration with State Enterprises Restructuring Agency, IDCZ has been looking for strategic partners to dilute shareholding in Deven and Willowvale up to 74%.
IDCZ’s mandate has been to drive industrialisation but in the past, the state investment vehicle diverted and started to run companies that it owns.
Following a Cabinet resolution that IDCZ should start providing development finance to the industry, the Corporation however decided to approach IDC South Africa for US$20m loan to kick-start this role.
IDCZ is mandated to establish and conduct any industrial undertaking, to facilitate, promote, guide and assist the financing of new industrial undertakings (including small and medium-scale), schemes for the expansion, better organisation, and modernisation of and more efficient carrying out of operations in existing industries and industrial undertakings.
