Radar plans to dispose of UBM

managing director of the hardware retail company, for an undisclosed amount.
Radar wholly owns UBM. Sources said last week the negotiations were at an advanced stage and would be concluded very soon.
“Radar wants to sell its entire stake in UBM to management but the value of the transaction has been kept under wraps,” said one source.

Efforts to get a comment from Radar managing director Mr Elias Hwenga yesterday proved fruitless as he was said to be out of the country.
But the group issued a cautionary statement last week advising shareholders of the transaction.
Last year, UBM revenue increased to US$9 million from about US$1,8 million in 2009 but margins remained tight due stiff competition.

Stock levels grew significantly but mainly funded by borrowings. Its branch network increased to 20 in the year.
A modern truss plant that uses kiln-dried timber from Border Timbers was commissioned in February last year and helped the company to grow volumes.
This year, Radar had projected a turnover of US$40 million with US$11 million coming from UBM.

Apart from UBM, Radar also owns 51 percent in Border Timbers, which is listed separately on the Zimbabwe Stock Exchange.
It owns 100 percent of MacDonalds Bricks and associated clay mines located outside Bulawayo.

UBM began operations in 1960 trading as A.F. Philip & Company. It is expected to benefit from the booming construction sector on the back of a growing economy.