BancABC to dispose PG stake

associate PG Industries.
Chief executive Mr Doug Munetsi confirmed that the bank is selling its stake in the loss-making supplier of building materials.
“The stake it available for sale,” said Mr Munetsi in an interview.
Last week PG issued a loss warning statement.
In a note to shareholders, PG said full-year earnings to December 31 are expected
to show losses higher than previously expected.
This has been largely driven by a
third-quarter performance, which was
lower than forecast, resulting from the timing of the impact of the capitalisation of operations.
BancABC said its associates made losses of about US$3 million.
“In the previous year, we made about US$2,2 million profit from the associates but this year, we made a loss in round terms of US$3 million and mostly coming from PG,” he said last week.
TA Holdings, which also has a substantial stake in PG, also issued a statement advising shareholders that the company was expecting to make significant losses, primarily driven by losses incurred by PG.
PG operates PG building supplies, PG Glass, PG Timber, PG Properties, Zimtile, DST, Manica Boards and Doors and Mitek Zimbabwe.
PG started operations in 1949 in Bulawayo as a merchandiser of glass and timber and diversified over the years into a wide range of products and services, including timber boards, cement, hardware, plumbing, glass, windscreens, wood and glass-based value-added products.
Operations had been hamstrung by hyperinflation, which resulted in shortage of working capital, failure to service plant and machinery, procure spares and replace old machinery.
Last year the listed company successfully raised US$11 million after a huge shareholder response to its rights offer and convertible debenture issue.
The company’s rights issue, which drew a 78 percent response from shareholders,
was the most successful capital-raising scheme through an equity instrument since the adoption of the multi-currency system in 2009.