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Business Reporter
Mutapa Investment Fund, Zimbabwe’s sovereign wealth fund, is poised to acquire local healthcare and drug manufacturing company CAPS Holdings, The Herald Finance & Business can report.
The move comes despite a Supreme Court ruling in February this year that overturned a High Court order granting ownership to the State, including the authority to appoint directors to the firm’s board.
Despite the court ruling, the Government views CAPS as a strategic entity and part of its assets, according to Government officials.
The officials said terms of the acquisition will need to be negotiated with CAPS’ beneficial owner Mr Fred Mutanda, who holds a controlling 88 percent stake in the company.
Some of the entities under CAPS Holdings include St Anne’s Hospital, CAPS Manufacturing and QV Pharmacies.
The ownership of CAPS has been mired in controversy since 2015 when the Government entered into a share purchase agreement with Mr Mutanda.
However, Mr Mutanda alleges that the Government later pulled out of the deal, rendering subsequent actions null and void. In a letter to Mr Mutanda about two weeks ago, Industry and Commerce Secretary Dr Utete Wushe said the Government would now address the matter through Mutapa.
“Reference is made to your letter dated 20 September 2024 regarding the acquisition of your shares in CAPS Health Care and Manufacturing by the Government of Zimbabwe,” read part of the letter.
“We have carefully considered your request and have consulted with our principals. After a thorough review, we have been informed that your matter will be handled by the Mutapa Fund. The Mutapa Fund is a reputable financial institution with a proven track record in managing complex transactions.
“They are well-equipped to address the specific nuances of your situation and will provide you with the necessary guidance and support.
“We believe that engaging with the Mutapa Fund will ensure a fair and efficient resolution to your matter.”
Mr Mutanda confirmed receiving the letter, saying he now awaited engagement with Mutapa on the way forward, once official protocols regarding the transfer of the matter to the sovereign wealth fund are completed.
“I can confirm receiving the letter you are referring to, but formal engagements with Mutapa will only begin once the transfer of the matter has been officially completed,” said Mr Mutanda.
No comment could be immediately obtained from Mutapa chief executive officer Dr John Mangudya by the time of going to print.
Mutapa is the country’s sovereign wealth fund established by the Act of Parliament. It is a strategic investment arm of the Government which was capitalised with shares in selected State-owned enterprises and investments.
The fund manages a broad portfolio of companies from different sectors of the economy which are divided into six clusters namely mineral resources, energy and trading, information communication technology, transport and logistics, agriculture and industries, financial services as well as real estate.
Mutapa is expected to benefit ordinary Zimbabweans in several ways. First, as the entities under it become commercially viable and profitable, they will reduce their dependence on Government support, freeing up resources for other priorities.
Second, increased production will lead to more employment opportunities and a more stable and resilient economy. Third, Mutapa will contribute to achieving the objectives of the National Development Strategy and the aspirations of Vision 2030 by increasing Gross Domestic Product (GDP) and per capita income.
Peter Tanyanyiwa
Online Reporter