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an emerging market it believes has “unlimited investment potential”.
The Alternative Investment Market-listed Zimbabwe focused investment firm last year said it planned to raise US$80 million for its new acquisitions.
From its initial public offering, Masawara raised US$25 million after Neil Woodford – who manages US15-billion worth of investments for the United Kingdom’s Invesco – bought 25,5 percent shareholding in Masawara.
The AIM-listed Zimbabwe-focused investment conglomerate then followed this up with a US$23 million capital raising from a placement of its shares.
Masawara Plc chief executive Mr Shingi Mutasa said the majority of the funding raised will be committed largely to buying assets in Zimbabwe.
“So far we have raised US$50 million equity, but we have raised significantly more for working capital. It runs into millions of dollars,” he said.
After a decade of financial instability, Zimbabwe offers assets at grossly discounted prices that will bulk up substantially once the economy has recovered.
Masawara seeks investment growth through a range of acquisitions across sectors, including agriculture, mining, real estate and telecommunications.
The company has so far acquired 100 percent shareholding in Zuva Petroleum One Limited, formerly BP Zimbabwe Marketing Services Limited and Zuva Petroleum Limited Two, formerly Shell Zimbabwe Limited.
The transactions were financed from funding extended by Masawara Plc and Alveir Management Limited to establish joint control with Masawara over Masawara Energy (Mauritius), which owns FMI Zimbabwe. FMI
Zimbabwe holds rights to and manages Zuva Petroleum assets.
Alveir Management, said Masawara Plc, provided US$7,5 million used for the acquisition of BP and Shell Marketing Services Limited (Zuva Petroleum Two).
Masawara is yet to carry out an independent valuation of property, plant, machinery and equipment, but for accounting purposes the firm provisionally valued the assets of Zuva Petroleum (I and 2) at US$38 million.
This provisional accounting valuation resulted in a fair value gain of US$6,3 million being realised in Masawara Energy Mauritius in which Masawara Plc holds 51 percent and therefore its share of the gain stands at US$3,2 million.
The gain from the fair value accounting was recorded in the financials for the interim period to June 2011 during which Masawara posted US$1,6 million before-tax profits. A full independent valuation will be done by December.
Further, Masawara is yet to carry out a physical verification of Zuva Petroleum Limited’s equipment, valued at US$9,2 million The firm has since made a provisional accounting valuation of US$4,9 million.
In March this year, Masawara acquired a 50 percent stake in Terelex Communications Limited, an Internet service provider registered in Zimbabwe.
In future, the company will offer international bandwidth to corporates and other service providers, fixed, nomadic and mobile broadband services via optic, Wimax network and 4G network for Internet solutions.
It has been recently concluded that Masawara will not proceed with plans to invest in chrome mining and smelting company after the investment counsel of the conglomerate advised against making the investment.
Meanwhile, Masawara Plc has announced that it had raised its shareholding in investment conglomerate TA Holdings from 30 to 35 percent.
Online Reporter