Companies

Victory for Militala on ZimSands sale

TINASHE MAKICHI


A subsidiary of Zimglass, Zimbabwe Industrial Sands Limited (ZimSands)
will now be sold with its parent company in a victory for liquidator Winsley Militala.


A former subsidiary of the Industrial Development Corporation of Zimbabwe (IDCZ), Zimglass was recently sold to a local firm Brainman
Investments.


Government was of the argument that Zimglass was supposed to be sold
without the inclusion of ZimSands.


Militala told Business Times that ZimSands was eventually sold together with its parent company.


“Zimbabwe Industrial Sands is a company 100% owned by Zimglass
and so being an asset of Zimglass it was naturally sold in the same deal.
Zimglass found a buyer finally and it was sold for ZWL$22.5m,” Militala
said.


“On the outcry on the price, everybody is allowed to have his/her own
opinion to any given situation. In my views, going by the valuations and
other offers previous offers received, the price was more than good. Even
the major creditor had no problems in accepting the offer.”


ZimSands is a supplier of silica sands and pebbles in the Southern African region. The company was incorporated in 1963 and was established
solely to supply Zimglass with silica glass sand for the manufacture of glass
containers.


Over the years the company has diversified its products which include the supply of foundry sands for foundry industry, filter sands for water filtration, building sands and cement bricks for the construction industry, as well as a small range of industrial talc fillers.


The parent company, Zimglass was placed under provisional judicial management in 2015. Zimglass has an installed monthly capacity
of about 240 tonnes of glass material for making bottles of beer, soft
drinks, food, pharmaceuticals as well as kitchenware.


Zimglass was established in 1963 as a subsidiary of Consol Glass and
became an IDC subsidiary in 1984.


The Gweru-based firm used to manufacture glass packaging material
for alcoholic and sparkling beverages, food, liquor, and pharmaceutical
segments.

Major domestic customers include Delta Beverages, African
Distillers, Mutare Bottling Company, Straitia Investments, Olivine
Industries, Datlabs and E. Snell and Company.

The latest sale of Zimglass comes after government in 2018 directed IDCZ to identify for disposal, ailing companies under its ambit that are non-core to its new mandate and in line with the country’s industrialisation strategy.

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