Dewei investment in PG gets nod

Business Reporter
Hardware retailer, PG Industries’ proposed investor Dewei Investments Limited has received all the necessary regulatory approvals paving way for the conclusion of the transaction. Under a High Court scheme, the Indian firm Dewei Investments Limited agreed to buy the entire PG Industries’ share register at a cost of $500 000.

“Scheme members are advised that Dewei Investments limited (Dewei) has now received the necessary regulatory approvals, including Exchange Control and Indigenisation,” said PGI in a statement.

“Dewei is now proceeding to conclude the transaction. It is anticipated that settlement to scheme members will be made in October 2017,” said PGI company secretary Kudakwashe Waniwa.

PG has been battling financial challenges, which saw it turning to a scheme of arrangement with secured suppliers, concurrent creditors and debenture holders. The scheme arrangement was meant to chart the turnaround of PGI. Apart from the first scheme of arrangement with creditors and debenture holders, PG had restructured its business to cut costs and concluded favourable terms with suppliers. In December 2014, PGI restructured operations as part of the scheme of arrangement.

It closed a majority of its branches. As of June 2015, PG Industries had paid secured creditors $4,3 million through property sales and debt swaps, while the balance of $965 082 was restructured to a three-year, 12 percent per annum long-term facility.