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Harare Bureau
INNSCOR Africa has lined up acquisitions in the light manufacturing industry among other strategic investments as part of measures to achieve growth and expansion. Group chief executive Antonio Fourie said the diversified group also plans to unbundle and consolidate some of its units. The giant firm has, however, been on a collision course with authorities over its aggressive expansion strategy with the market expressing fears of an imminent monopoly.
Speaking on the sidelines of the company’s EGM to approve the unbundling and separate listing of Innscor’s QSR business, Fourie said the group is still looking at acquisitions that can buck up the business especially in areas of importance.
“We’re looking at expanding on acquisitions that can buck up our business in areas of importance and in particular light manufacturing. We’re looking at a number of opportunities and all things being equal we need to adhere to all the regulatory demands so that we do things right in the process.
“There are acquisition opportunities particularly in the light manufacturing that I think we should take advantage of,” said Fourie. The conglomerate, which became the first ZSE listed firm to hit the $1 billion revenue mark in 2014, said unbundling will unlock value to Innscor Africa Limited shareholders and allow investors choice and also enhance better portfolio management.
Fourie said the group has a focused strategy to achieve organic and acquisitive growth, improve margins and reduce costs towards achieving target return on equity and cash generation objectives.
Shareholders yesterday unanimously voted in favour of the unbundling of the QSR business from Innscor and its separate listing on the Zimbabwe Stock Exchange. Innscor group corporate finance director John Koumides said there is opportunity for growth in the QSR business but regional units have been hit by the devaluation of regional currencies hence affecting their performance.
“Obviously the market is difficult and the past three months have been very difficult but under such conditions the QSR business has a strong balance sheet, good footprint and well established brand that is dominant,” said Koumides.
Innscor’s fast food business has been expanding on the African continent and the group operates its own fast food outlets in Kenya, Zambia, Ghana and the Democratic Republic of Congo as well as franchised operations in Swaziland, Lesotho and Malawi.
The Innscor group sees improved performance going forward buoyed by the ongoing restructuring exercise and an aggressive branch network expansion.
Online Reporter