adminASTRA Industries major shareholder Kansai Plascon has to scale down its stake in the group to 49 percent by January 2018. According to the group, the sell down, which will enable it to meet indigenisation requirements, will be subject to market conditions.Kansai Plascon partnered with Astra management and staff to acquire a 63,25 percent interest in the issued share capital in Astra, from the Finance Trust of Zimbabwe, an investment vehicle owned by RBZ.
The consortium has now secured the necessary approvals from the authorities.
The group said it would now grow exports into the region (Zambia and the Democratic Republic of Congo). This ties in well with Kansai Plascon’s main strategy which is to expand its leadership position into the rest of Africa. Kansai has brand presence in Botswana, Namibia, Zambia and Malawi. The group will also expand its Bulawayo factory capacity. The partnership will also allow the firm to invest more resources into research and development in a bid to enhance the final product. New Plascon brands will be introduced in the Zimbabwean market while there are plans to manufacture them locally too.
Astra Paints is Zimbabwe’s leading paint company with two operating factories in Harare and Bulawayo. It enjoys 40 percent of the paint market and it also holds other operating subsidiary like Astra Chemicals, which markets and distributes a diversified range of chemical products to industry.
The group will also support two vocational centres in Harare and Bulawayo until January 2018 and there will be skills transfer and training using the expertise and resources of the international firm. Astra was buyers only at US5 cents on the stock market yesterday — FinX.
Online Reporter