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Fresh from the multi-million dollar acquisition of Lobel’s Holdings, private equity firm Takura Capital is tipped to take over food manufacturing firm Cairns Holdings in a US$30 million deal.
Sources close to the deal told The Sunday Mail Business last week that while there were other contenders, Takura Capital’s bid “has been impressive”.
Vasari Global Holdings, Dairibord Holdings, Judah Holdings Limited and Eastern Trading Company Limited of South Africa are reportedly keen on acquiring a stake in Cairns Holdings.
Contacted for comment, Takura Capital partner Mr Tafadzwa Nyamayi said: “I think for now we are the preferred bidder. But what is going to happen is that creditors and members are going to vote (to select the winning bid). That is the current situation. The vote is going to be done on July 15.”
Last Monday, Cairns Holdings judicial manager Mr Reggie Saruchera of Grant and Thornton said the High Court had ordered that creditors meet on July 15 for the purposes of “considering and, if deemed fit, agreeing, with or without modification to a Scheme of Arrangement between the company and the scheme members and creditors”.
If Takura Capital wins the Cairns bid, its reputation will rise phenomenally following its acquisition of Lobel’s Holdings three months ago in a deal that saw the equity firm repay the bread-maker’s US$18 million debts to CBZ, FBC Bank and NMB.
Takura Capital is understood to have received a cash injection of US$50 million.
Mr Nyamayi said of this: “I won’t be able to confirm the amount and the terms of the funds as that remains confidential. However, I can confirm that we have the funds to follow through the Cairns deal if creditors and members approve our bid.”
Cairns Holdings acting chief executive Mr Jeremiah Kwenda told The Sunday Mail Business in an earlier interview that sales figures for the first quarter of 2015 jumped 17 percent compared to the same period last year.
The increase was attributed to an increase in product range by the company.
Mr Kwenda said the company aimed to push sales volumes up 50 percent by year-end riding on demand for corn snacks.
Average capacity utilisation has also increased from 30 percent to 40 percent in the first quarter of 2014 after the company bought new machinery from China last year to improve efficiency and quality of corn snacks.
It could not be established how much Cairns, which received about US$1 million under the Distressed Industries and Marginalised Fund in 2013, used on the machines.
In the quarter under review, average monthly sales rose from US$1,7 million to US$2 million and they are expected to rise to about US$3 million by year-end.
Cairns Holdings has re-opened its Mutare plant and re-introduced products such as Sun Jam and its baked beans offering. The baked beans segment had collapsed because of an influx of cheap imports.
By end of 2015, Cairns wants to re-introduce Pro-Nutro cereal and its marmalade range.
Online Reporter