admin“We will be concluding negotiations with shareholders and hopefully by end of the week we will be able to announce some new developments,” said the source.
CFI has been looking for strategic investors and new funding for the past few years hoping to improve its capacity and expertise as well as change of fortunes.
Last month, other sources close to the investment deal told a local business weekly that global company, Meat Team, was the possible partner for the CFI poultry division.
Meat Team is the trade name for a group of companies whose main activities are in the wholesale, distribution, import and export of meat, fish and other various food products.
It is believed the transaction would result in a 50-50 joint venture in which the new investors would match the already existing assets dollar for dollar.
In May this year, CFI announced that it had secured a strategic partner for its milling division, Victoria Foods, as the group intensified its recapitalisation drive.
CFI chief executive Mr Steve Kuipa confirmed the development to shareholders at an annual general meeting but did not disclose specifics of the deal citing confidentiality clauses.
Mr Kuipa said the transactions would help to address some of the bottlenecks and inefficiencies imposed by aged infrastructure.
CFI operates three divisions namely poultry, specialised and retail. The poultry division includes animal health unit Vetco, Agrifoods and Agrimix as well as Hubbard Zimbabwe, Glenara Estates, Crest Breeders and Suncrest Chickens.
The specialised division comprises milling and snack-foods operation Victoria Foods while the retail business operates Farm & City branches around the country and the Town and Country stores, which the company was leasing out to the now defunct supermarket chain, Afro Foods. —New Ziana.
Online Reporter