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Rumbidzai Zinyuke Business Reporter
THE AICO Share Trust has signed an agreement with a foreign investor who is set to take over the Trust’s shareholding in Olivine Holdings limited. The deal is with an Asian company Wilmar International, a firm which also has an interest in Surface Investments. In a letter to Olivine employees seen by The Herald Business, managing director Mr Jonas Mushanyari said the investor was expected to capitalise the business.
“All employees are advised that AICO Trust has signed an agreement with a foreign investor who will take over Aico Trust shareholding in Olivine Holdings Limited.
“The investor will capitalise the business. The transaction is subject to regulatory approvals. Employees will be kept informed of developments relating to the transaction in due course,” read part of the letter.
The Industrial Development Corporation general manager and group chief executive Mr Mike Ndudzo, however, declined to comment on the deal.
“I am unable to comment as we signed a non- disclosure agreement, and appeal to you to respect it also for the sake of our country’s economy and credibility,” Mr Ndudzo said in an emailed response on Friday.
IDC met with beneficiaries of the AICO Olivine Holdings Share Trust at an annual general meeting held in February to approve the disposal of a 50,69 percent stake in Olivine Holdings of which 49,31 percent was previously held by AICO, which was warehoused pending disposal to interested suitors.
The trust received the shares (14,17 million shares) owned by AICO by way of donation. However, IDC exercised its pre-emptive right to purchase the shares on a back-to-back basis. IDC canvassed for bidders and the tender process resulted in a bidder whose price and strategic fit was considered appropriate.
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