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Lovemore Zigara Midlands Correspondent
AICO Africa Limited has disposed its shareholding in struggling processor, Olivine Industries, to a new investor who is set to inject fresh capital to revamp the firm, a senior official has said. AICO Africa, a subsidiary of the Industrial Development Corporation (IDC), held a 49.3 percent stake in Olivine industries prior to the transaction.
IDC general manager Mike Ndudzo confirmed the deal had been reached for the takeover of Olivine but could not disclose the identity of the new investor and the figures involved saying they are bound by a non-disclosure agreement.
“A deal on the takeover of Olivine has been completed. We’re now implementing the deal. The AICO (Africa) shares were bought and the new partners are now doing their technical and other evaluations. “The board has already changed and the new shareholder agreement and articles are now in place,” he said.
“We’ll only divulge the identity of the new investor at an appropriate time because at the moment we’re bound by a non disclosure agreement.” Last year, Olivine managing director Jonas Mushanguri announced that five investors had expressed interest in the takeover of the giant food processing firm.
The company is currently operating below 35 percent capacity utilisation and requires about $25 million in fresh capital. Olivine is one of the companies the IDC had earmarked for disposal. However, the process of shedding off some firms has been difficult as some of the troubled companies have been finding no suitors.
The corporation intends to dispose of Allied Insurance, Almin Metal, Amtec, Deven Engineering, G&W Industrial minerals, Surface Investments, Stone Holdings and Zimbabwe Grain Bag among others to third parties. Funds from the disposal of the companies will be channelled towards restructuring the IDC debt and as seed capital to fund new projects.
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