Acquisitions, mergers dominate market

more deals are expected into the year.
Pan-African financial services group Imara recently said a spree of corporate restructuring is on the way — something that has already started happening.
Imara, in the forefront of selling Zimbabwe as an investment destination in the emerging market, has since alerted international investors to the prospect on an upcoming spree.
Cambria Africa, formerly LonZim, announced that it was set to operate without the help of its parent company resulting in them changing the name and structure of the board. Zimbabwe Stock Exchange-listed agri-business firm Ariston is now controlled 61 percent by South Africa’s Afrifresh. AmVest previously held the shareholding.
After the US$8 million capital injection, Ariston has projected a US$4,2 million profit in the fifth year after the US$8 million capital injection the firm raised through the rights offer. The Afrifresh group is one of South Africa’s top producers and exporters of citrus fruit and grapes. Currently, it exports to 54 countries worldwide.
Furthermore, RioZim shareholders resolved to raise US$55 million through a number of fund-raising initiatives. They have already raised US$5 million through a rights issue.
Existing shareholders have been diluted after they managed to subscribe for 60,63 percent of the 10 million rights issue shares.
The remainder has been taken by Old Mutual, increasing its stake in the resources firm to 29,67 percent.
RioZim seeks to raise US$45 million through a private placement of 13 325 000 shares to GEM Raintree Investments of Mauritius representing 24,9 percent of the company’s issue share capital.
It still stands a chance of increasing its stake to about 54 percent in the event that they hold on to the convertible debentures.
RioZim, an investment company with interests in mining and energy, has managed to resolve its indebtedness and provided a way forward. This transaction was sparked by an application by a consortium of banks for the company to be put into judicial management.
Construction giants Murray & Roberts says it is close to sealing a deal involving local and foreign investors lead by M&R chairman Paddy Zhanda.
TN Bank is also seeking a separate listing on ZSE following a deal to let go its 45 percent in a deal linked to Econet Wireless.
No money is expected to change hands in the deal and details of the transaction have remained sketchy.
A number of deals were also concluded in the financial sector, with AfriAsia Bank taking over 35 percent of Kingdom Financial Holdings. Board changes to represent interests of the new shareholder are expected soon.
About US$9 million has been injected into the bank, resulting in the institution meeting the Reserve Bank of Zimbabwe minimum capital requirements. Recently, the Zimbabwe Allied Banking Group was taken over by Treble and Kays linked to Minister Obert Mpofu, while Royal Bank is now in partnership with Kenya’s Commercial Bank of Africa.
There are also reports that Trust Holdings banking arm, Trust Bank, is courting foreign investors to inject about US$20 million into its operations.
The RBZ has been putting pressure on banks to raise minimum capital requirements resulting in the banks emerging stronger.