adminsubsidiary, Premier Milling Company to Croco Holdings for just over US$1 million.
The disposal comprises the sale and transfer of shares in Premier, its assets and liabilities, Chemco said in a statement to shareholders yesterday.
Chemco, which owns 67,5 percent in Agricor, says it has decided to sell Premier Milling Co as it was a non-core business and excess to the requirements of the group and some of its subsidiaries.
The proceeds would be used to retire expensive bank loans and debt as well as provide essential working capital for expansion, mainly in the manufacture of agro-chemicals.
General manager Mr Alistair Gibson told an annual general meeting on March 7 this year that the group was looking to extinguish its US$1,2 million debt through the sale of its non-core assets.
Much of the debt built up in the companies it acquired from the Orphanides family in July 2006 through issue of 5,675 million Chemco shares of 40 percent of the shares in issue at the time of transaction.
“We intend eliminating a lot of that debt to provide additional cash for the core business,” Mr Gibson said then.
Over the past year, Chemco divested out of Agpy after selling the entity to its management while subsidiaries Farm-A-Rama and Chemco Transport were discontinued.
Chemco is a Zimbabwe-based holding company. During the year ended October 31, 2008, the company was mainly engaged in property investment, as well as in the manufacture and distribution of agricultural chemicals, agricultural supplies, building and hardware supplies and agricultural seed.
Chemco Limited operates through Agricura, which covers crop chemicals, industrial chemicals, pest control services and TS Timber.
Online Reporter