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Business Reporter
JUST when it looked like Lobels was rising, a shareholding dispute between new owners Takura Capital and former CEO Mr Ngoni Mazango might foul what was baking in the oven, with indications that the displeased ex-boss will seek legal recourse.
Information obtained by The Sunday Mail Business shows Mr Mazango fell out with the new owners after it looked like they were unlikely to honour implementation of a 10 percent executive share option scheme that the CEO was to benefit from.
The last time Mr Mazango’s conditions of employment were reviewed in July 2012, the company made an undertaking to allocate 10 percent of Lobels Bread Harare to senior management upon full repayment of debentures.
Minutes of a meeting of the interim Altiwave board — a four-bank consortium that moved in to recover money owed by Lobels — at NMB’s boardroom on June 26, 2012 show that the share option scheme was “mostly for the benefit of Ngoni Mazango”.
“Board discussed the possibility of an employee share option scheme mostly for the benefit of Ngoni Mazango. Agreed that too early to discuss the matter. Also agreed that Mazango be advised that a 10 percent executive share option scheme would be concluded as soon as the banks have been fully paid,” read part of the minutes.
Last month, Takura Capital acquired Lobels Holdings in a deal that saw the company repaying the bread-maker’s US$18 million obligations to four CBZ, Metbank, FBC and NMB banks.
It is believed that new management is not agreeable to the commitment that was made during the tenure of the former management.
But relations between Takura Capital and Mr Mazango then broke down and the latter has resigned.
And in accepting the resignation, Lobels Holdings said it wanted to buy a 10 percent stake Mr Mazongo owned in Lobels Bulawyo through Hillsit.
“Ten percent of Lobels Bulawayo is owned by Hillsit (Pvt) Ltd, which is a company beneficially owned by you. We propose that the company acquires this 10 percent equity take based on a valuation arrived at by a big 4 (sic) accounting firm (PWC, Deloitte, KPMG or Ernst and Young) of your choosing,” indicated Mr Stanley Musesengwa, a director with Lobels Holdings, in a letter of acceptance of Mr Mazango’s resignation dated April 22, 2015.
Mr Tafadzwa Nyamayi, a partner at Takura Capital, said last week Mr Mazango’s departure was not likely to affect Lobels in any way.
“Lobels has a very capable management team and depth of skills that transcend individuals. For generations, Lobels has been known for consistent high quality, great tasting fresh bread, which is a result of hard work and dedication by all levels of staff, from the lowest grade to the CEO level.
“The heritage of the brand and products is jealously guarded by all employees, and despite competitors having copied packaging, the Zimbabwean consumer is very discerning and values the great taste and quality of Lobels bread,” he said, adding: “Lobels fully subscribes to the concept of equity participation in the company by staff.”
When on the brink in 2008, Lobels managed to remarkably wrest the market from Bakers Inn, a subsidiary of industrial behemoth Innscor Africa, after it went on an aggressive recapitalisation drive.
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