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Conrad Mwanawashe Business Reporter
The Government has approved Kansai Plascon and Hemistar’s plan to make a mandatory offer to minority shareholders in line with the requirements of the Zimbabwe Stock Exchange.In a letter to Astra Industries chairman dated August 26, the Minister of Youth, Indigenisation and Economic Empowerment, Francis Nhema said Astra Industries shall notify the minister of the resultant shareholding structure after the offer to minority shareholder.
“Following your various letters and discussions held with the ministry officials on August 25 2014, I hereby approve that Kansai Plascon Limited and Hemistar Investments (Pvt) Ltd proceed to make a mandatory offer to minority shareholders in line with the requirements of the Zimbabwe Stock Exchange,” Minister Nhema said.
Japanese company, Kansai Plascon and Hemistar, an investment vehicle for Astra management and staff, acquired the Reserve Bank of Zimbabwe’s 63,25 percent interest in the issued share capital in Astra.
The RBZ held the shares through its investment vehicle known as the Finance Trust of Zimbabwe.
The indigenisation minister said should the resultant shareholding structure falls short of the requirements of the Indigenisation and Economic Empowerment legislation, Astra Industries Limited is required to submit an Indigenisation Implementation Plan which achieves the 51 percent indigenous shareholding over a defined time period.
Astra Industries management and staff own 51 percent of Hemistar while the balance is owned by Kansai. The South African company controls 38,19 percent of the issued share capital of Astra.
The approval by the Ministry of Youth Indigenisation and Economic Empowerment will allow Astra Industries to delist from the stock exchange. Under the proposed offer Astra Industries minority shareholders will receive $0,06 for every Astra share disposed of.
The company will invest $300 000 over a period of five years towards the construction of a new vocational training centre in Matabeleland North and in upgrading training infrastructure at Chaminuka Vocational Training Centre.
“I note that Astra Industries Limited will collaborate with Chaminuka Vocational Training Centre in upgrading training infrastructure and/or equipment to the value of $30 000 per annum over a five year period.
“Furthermore, Astra Industries Limited will contribute $30 000 per annum over a five year period towards the establishment of a new vocational training centre in Matabeleland North province. The details of the proposed economic Empowerment Plan will be developed in consultation with my officials and formalised through a Memorandum of Understanding,” Minister Nhema said.
Online Reporter