adminwill be primarily used to fund entry by Cambria’s Millchem investment into the Zambian market and refinancing the company’s existing liabilities.
The increased financing now available will be used to fund entry of Cambria’s rapidly growing Millchem investment in Zambia, refinance the company’s existing debt obligations, as well as for general working capital. Millchem, a wholly-owned subsidiary of Cambria, is a value-added chemicals distributor with substantial reach and a leading market position in Zimbabwe.
Millchem is the premier distributor in the country of solvents, metal treatments and alkyd resins. In a trading update released by Cambria on September 19, 2012, it was announced that Millchem had organically grown gross profits year-on-year by 95 percent. Cambria chief executive Mr Edzo Wisman commented: “Besides refinancing existing liabilities of the company, this new (US$1,5 million) financing facilitates an acceleration of Millchem’s entry into the Zambian market.”
Millchem has increasingly explored opportunities in the region on the back of stellar growth achieved in the Zimbabwean business. After the success of initial sales into Zambia, Cambria will now invest in a more structured presence for Millchem, including a Lusaka office and warehouse.
Various existing suppliers, encouraged by Millchem’s rapid growth in Zimbabwe, have already offered to extend Millchem’s Zimbabwe agencies into Zambia.
Cambria, quoted on the AIM market of the London Stock Exchange, is a long-term, active investment company, building a portfolio of investments primarily in Zimbabwe.
The company’s Payserv investment, until recently operating as Paynet Group, established a Lusaka office in December last year, in anticipation of entering the Zambian market. Partnering with existing players, it expects to lead with its Paynet EDI switching technology and make available its other outsourcing products to Zambia’s growing financial and business sector.
Mr Ian Perkins, Cambria chairman, commenting on the increased facility with Consilium said: “We continue to appreciate the confidence from our significant shareholder, Consilium, in the progress made at Cambria, evidenced again with this additional debt financing provided to us.”
Mr Jonathan Binder, managing director of Consilium Investment Management, added: “We remain excited and impressed with the developments at Cambria and, as already stated in December, we are committed to playing a supportive role in providing debt and equity finance for the company.”
Online Reporter