adminMartin Kadzere Senior Business Reporter
GOVERNMENT has put on hold the sale of Reserve Bank of Zimbabwe’s 100 percent shareholding in Homelink Ltd for undisclosed reasons, sources familiar with the development said.
The Government has also terminated the mandate of Homelink’s five non-executive directors with immediate effect.
The decision by the Government has come despite a $22 million offer made by a consortium of local and foreign investors to acquire the stake. Homelink, which runs a housing development scheme and a mortgage financing scheme is among non-core assets that the RBZ intends to dispose.
Other assets being sold include RBZ’s 65 percent stake in Cairns Foods, 70 percent stake in Tuli Coal Mine in Beitbridge, 50 percent shareholding in Transload (Private) Limited, 65 percent equity in Scientific Research and Industrial Development and its 100 percent shareholding in Carslone Enterprises.
“The Reserve Bank has written to Homelink advising that the sale of its shareholding in the company has been reversed by the Government,” said one source who requested not to be identified.
“No reasons were provided. The mandate of all non-executive directors has also terminated with effect from today (yesterday).”
No official comment could be obtained from the Reserve Bank and Homelink by the time of going to print.”
Homelink was incorporated in February 2005 with the primary objective of mobilising foreign currency remittances from the diaspora when Zimbabwe was facing serious foreign currency shortages.
Over the years, the company adapted to the changing business environment and transformed itself into a financial services company. It has widened its market to include local Zimbabweans. The company offers a wide range of financial services products, which include home loans, micro-financing, property construction, property management and money transfer services.
It’s Housing Development Scheme has seen more than 600 Zimbabweans in the country and abroad becoming homeowners. Homelink gives clients 10-year tenure on housing loans. Through the scheme, Homelink has constructed houses as a way of alleviating the shortage of houses in the country.
Easylink Money is Homelink’s brand for money transfer business.
Easylink started operations in May 2010. Easylink works in partnership with a leading and reputable International Money Transfer Agency with an established global network.
In adapting to the changing economic environment, as well as offering clients up to date and relevant products, Homelink introduced Microlink Short-Term Loan facility. Micro-finance products offered include personal loans, car loans, educational loans and SME loans.
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