Cairns ponders ZSE delisting

Exchange.
The meeting, scheduled at the High Court of Zimbabwe on June 19, would also include further proof of claims and an update on the progress made on potential new investors.

Cairns Holdings judicial manager Mr Reggie Saruchera said members and creditors who had their claims provisionally accepted need not attend the meeting.

“Notice is hereby given that the second meeting of members and creditors of Cairns Holdings Limited and its subsidiaries will be held on Wednesday 19 June 2013,” said Mr Saruchera.

If members and creditors approve the proposal to delist from the ZSE, the company could become the fourth to exit the ZSE since last year. They do so only for reasons to aid the search for an investor.

Pharmaceutical company Caps Holdings followed a similar route last year after it delisted from the ZSE to ensure more flexibility in its search for investors who would inject fresh capital.

By the time CHL shareholders and creditors meet next month they will know whether Russian billionaire Mr Nikolay Varenko would have made a decision to invest in the company.

The Russian tycoon is expected in Harare on Thursday this week, ahead of a meeting to be held with Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere.

Mr Varenko is reportedly not only keen on acquiring the 67 percent stake held by the Reserve Bank of Zimbabwe, but on buying out minorities for an entire stake in the ZSE-listed company.

However, this would require that he gets special dispensation from Minister Kasukuwere, as the Moscow billionaire wants, for a start, to hold controlling interest in the beverage and foods manufacturer. This is because the Indigenisation and Economic Empowerment Act requires indigenous black Zimbabweans to hold at least a 51 percent stake in any firm, unless a special waiver is granted by Government.

Mr Varenko is also reportedly keen on having Harare businessman Mr Wicknell Chivhayo, who initiated the deal, as his indigenous partner.

If he has his way, Mr Varenko is prepared to invest between US$20 million and US$30 million to get the company going.

Cairns reportedly requires US$700 000 for immediate working capital and an additional US$11 million to clear its debts.