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consortium which has shown interest in buying the stake, sources have said.
The price of the shareholding, based on the market value, will be roughly US$11,5 million at the last stock price of US11,5c yesterday.
“The specifics of the deal are being negotiated, but at least there is mutual understanding between the negotiating parties,” said one source.
“However, reasons for their decision to pull out are yet to be disclosed.” Both M&R chairman Mr Paddy Zhanda and acting chief executive Mr Stewart Mangoma professed ignorance on the development.
“If there is something of that sort going on, (then) it could be in line with their business review strategy,” said Mr Zhanda in an interview yesterday. “But as of now, I am not aware of that development.”
There was mixed reaction from local analysts on the transaction. Some said it did not augur well with some foreign investors in the company, as their exit would see the company losing technical support.
“The expert component will be diluted and this may worry some foreigners who had bought shares in M&R,” said one stockbroker. Some have questioned the timing of the transaction, saying it came at a time when the construction business in Zimbabwe was showing signs of recovery. “I am not sure why M&R would pull out of Zimbabwe just as the construction sector is picking up,” said a fund manager who oversees local and overseas investment funds worth several millions of dollars.
Murray & Roberts has been listed as a public company on the Zimbabwe Stock Exchange since 1974.
The group has two operating segments — contracting and manufacturing.
The contracting division consists of Murray & Roberts Construction Zimbabwe and Proplastics.
The manufacturing division produces and distributes a wide range of plastic piping systems for different market niches, locally and in the region.
The group’s contracting operations form a portfolio of complementary competencies allowing it to undertake turnkey contracting activities.
Murray & Roberts also optimises the synergies and relationships between its portfolio of investments and those of its major shareholder, Murray & Roberts Holdings Limited of South Africa.
Online Reporter