Battle for Hwange over

withdrew the High Court case challenging the legality of the recent Annual General Meeting.
Justice Chinembiri Bhunu yesterday ruled that the applicant pay the costs of a high scale at the attorney and client scale.

EARLIER REPORTS

• Struggle for control of Hwange …
• Mpofu, Savanhu clash
  

Mr Savanhu had filed an urgent chamber application to nullify the August 3 AGM, which saw his former board being booted out despite his directive to adjourn the meeting. The withdrawal of the case ends Mr Savanhu’s efforts to block the new board. The court ruling now paves the way for the shareholders to appoint the new chairman from the newly elected board members.

The Government is the major shareholder in Hwange, controlling 38 percent, with businessman Mr Nicholas van Hoogstraten owning 36 percent.
As the AGM was ruled legal it means that all the resolutions it passed, including the appointment of new directors, are binding.
The new directors include Shingirai Chibhanguza, Jemister Chininga, Ian Hatuperi, Nkosolathi Jiyane, Siphiwe Maphuwa, Johnson Mawere, Farai Mutamangira, Lucas Nkomo and Valentine Vera.

This means that Fortune Chasi, Thandiwe Mlobane, Shingi Mutumbwa, Thabani Ndhlovu, Alpheus Ngapo, James Nqindi and Rosemary Sibanda cease to be board members.
Mr Fred Moyo, the managing director, was the only survivor from the previous board.
Speculation is that Advocate Farai Mutamangira is likely to land the chairman’s post.

The new board is expected to secure funding for recapitalisation as the company has been failing to secure funding. The company is also seeking additional coal concessions against the backdrop of increasing competition from new coal mining grants holders.
Hwange has been financing its recapitalisation initiatives through short-term facilities due to the absence of long-term capital on the local market.

For the financial period ended December 31, 2010 current liabilities had increased from US$58,3 million in the previous year to US$88,2 million. The largest chunk was from trade creditors and borrowings.
Last year Hwange said its long-term recapitalisation programme was dependent on an audit of its local resources and reserves.

Hwange has been in talks with development banks for possible funding. The company has been struggling to obtain funding since the hyperinflationary era.
The company at one time sought US$75 million from the Development Bank of South Africa.
Hwange is primarily listed on the ZSE. Its shares also trade on the Johannesburg Stock Exchange and the London Stock Exchange.