adminListed concern CFI Holdings says it has successfully concluded a Sale and Purchase Agreement and a Debt Assumption and Compromise Agreement to dispose of 81 percent of its property investment company, Langford Estates to Fidelity Life Assurance Ltd.
It now awaits shareholder approval. The transaction, valued to the tune of $18 million, sees the insurance firm taking a majority stake in the 864-hectare estate. And in terms of the deal, Fidelity Life will now also assume CFI’s debt to a consortium of local banks.
In a cautionary statement to shareholders yesterday, CFI said it was “pleased to announce the successful conclusion of a Sale and Purchase Agreement as well as a Debt Assumption and Compromise Agreement to dispose of 81 percent of Langford Estates (Private) Limited a property investment company, for a total consideration of $18 million, through a debt for land swap arrangement.”
Added the statement: “If concluded successfully, the transaction will result in CFI settling all its interest-bearing debt owed to local financial institutions, with the only remaining interest-bearing debt being a long-term facility of $2,3 million owed to PTA Bank.”
CFI has indicated that it will “soon” call for a general meeting of shareholders to “consider” the transaction.
The agro-industrial company has also said that it is in the process of engaging potential investors and its major shareholders, “with a view towards securing fresh capital for the company.”
Meanwhile, acquisition of the Langford Estates — a piece of undeveloped urban land located in Harare South which measures about 834 hectares in extent — will provide further impetus for Fidelity Life’s housing development projects.
Langford Estate has approved a plan for 11 500 housing units, with an estimated downstream value in excess of $200 million.
Fidelity’s housing portfolio, which commenced in 2011, includes Manresa Fidelity Park in Arcturus and South View Park housing scheme along the Harare-Masvingo Highway. —BH24.
Online Reporter