Costain mulls staff share trust

Limited says it is working on a staff share ownership trust to ensure that all workers benefit from the local ownership of the construction firm.
Led by the executive chairman, Mr Tendai Chimuriwo, the management consortium upped its stake in the company from 15 percent to 100 percent for an undisclosed amount.
The deal was concluded recently with approval from the Ministry of Youth Development, Indigenisation and Economic Empowerment.
Prior to the deal, the construction group was owned by the London Stock Exchange-listed Costain plc.
With the localisation of the shareholding, Costain Zimbabwe will now change its name to CZL Incorporated (Private) Limited.
Other members of the consortium are Mr Dave Guy Martens, the chief operating officer, group finance director Mrs Nozipho Guzha and the technical services director, Mr Kennedy Sakuhuni.
“I wish to confirm that a management consortium that I lead has successfully concluded a transaction for the 100 percent takeover of the company in Zimbabwe,” said Mr Chimuriwo.
“As Zimbabweans who have run this business without any expatriates for the last 16 years, local ownership was now overdue. We are very happy that the former shareholders in London have been proactive and supported our bid to purchase the business outright.
“A staff share ownership trust is being worked out and is nearing completion to ensure that all members of staff also benefited from the local ownership of the business.”
CZL is the strongest and largest construction company in Zimbabwe and has operated in the country and region since 1947.
It has built many high-rise buildings in Harare, among them the Reserve Bank, Karigamombe Centre, Eastgate and many others.
It is also involved in mining and infrastructure development programmes at Unki, Shurugwi, for Anglo American Corporation in Zimbabwe.
The company recently won the tender to build a new hotel for NSSA in Beitbridge for US$20 million and is currently working on five State university projects in Zimbabwe. Its 2011 order book stands at more than US$50 million.
The business comprises CZL Incorporated (Private) Limited, involved in construction and financial engineering, Nyamandoto (Private) Limited, involved in plant and transport and Delta Resources (Private) Limited which is into framework and scaffolding hiring services, the provision of construction logistics and fuel procurement and distribution and minerals exploration and mining.
In a statement from London, Costain plc group chief executive Mr Andrew Wiley said: “Costain Group plc, the international engineering and construction group, has announced the sale of its interests in the Zimbabwe company, Costain Zimbabwe (Private) Limited. Costain confirms that it has no future involvement in this business.
“The interests have been purchased by a consortium headed by group executive chairman, Mr T. P. Chimuriwo, for a commercial consideration. The consortium will trade under the name CZL Incorporated (Private) Limited. The Costain Group would like to wish Mr Chimuriwo and his colleagues the very best in their new venture.”
The London-listed company sent its finance director, Mr Norman Critchlow, and group property director Mr Martin Burdes to sign off the deal with the management consortium two weeks ago.
The team paid a courtesy call on Indigenisation Minister Saviour Kasukuwere who hailed the transaction as a positive development.
“It’s a further cap in our programme for indigenisation and economic empowerment. This transaction demonstrates that the programme is not a grabbing exercise as our detractors have been saying,” said Minister Kasukuwere.
While it has sold its construction and engineering business in the country, Costain Africa (Private) Limited remains invested in Zimbabwe in the property sector, where it owns various buildings and prime property sites in major cities.