Kudakwashe Mutandi

PRIVATE equity firm Takura Capital has acquired Lobel’s Holdings in a deal that saw the former repaying the bread-maker’s US$18 million debts to CBZ, Metbank, FBC Bank and NMB.

The development means that the four banks, which temporarily converted their debt into equity under a five-year plan to resuscitate Lobel’s, will exit to concentrate on their core business.

This should also provide good competition to Baker’s Inn, a subsidiary of Innscor Africa.

Last Friday bakers reduced the price of bread by about 15 percent, something analysts say points to price corrections in the market.

The Takura Capital transaction highlights a remarkable turnaround for Lobel’s, which in 2008 was on the brink of collapse as creditors besieged the business.

But the four banks stepped in and poured more than US$4,5 million into refurbishment of existing plant and purchase of new plant equipment. Sources said the company had made significant strides and now controlled a significant share of the market.

Outgoing Lobel’s board chair Mr Lionel Chinyamutangira confirmed the development but referred all questions to new owners Takura Capital, who could not be reached for a comment by the time of writing.

According to its website, Takura Capital is a pioneer private equity house established in 1997 to invest locally. It has evolved into a focused private equity firm with interests across Sadc. Current Lobel’s chief executive officer Mr Ngoni Mazango and his team have been credited for pulling the company out of the woods.

As part of its growth strategy, Lobel’s introduced new retail outlets selling bread and confectionary across Harare.

Lobel’s was previously owned by Ceuvost Services – a consortium comprising former FBC Holdings Limited chief executive officer Mr Livingstone Gwata, the banking group’s chairperson Mr Herbert Nkala, FCM Motors chair Mr Freddy Mtanda and Brigadier-General (Retired) David Chiweza.

The four held about 25 percent shareholding each in the company.

Lobel’s recent history

June 2008: Flour runs out at Lobel’s. More than 1 200 workers sent on forced leave as company contemplates retrenchment

Sept 2010: Then CEO Dr Burombo Mudumo resigns. Mr Tinotenda Chimhashu appointed acting CEO. Preliminary report by Camelsa shows Lobel’s lost US$7,6 million siphoned through fictitious companies linked to management. Oct 2010: Lobel’s seizes shares worth between US$2,5 million and US$3 million from Dr Mudumo. March 2011: Company resumes production

May 2011: Venture Petroleum takes Lobel’s to court over US$57 000 debt

June-July 2011: Operations temporarily suspended to conclude restructuring process. NMB sues Lobel’s over US$4,3 million debt. Lobel’s begins discussions with creditors

Aug 2011: Lobel’s reopens

Jan 2013: NSSA seeks to auction Lobel’s assets over US$600 000 debt

Sept 2012: Mr Fred Mtanda sells 25 percent stake. Local banks take over Lobel’s

Dec 2012: Lobel’s resumes Harare operations after recapitalisation

Jan 2013: Lobel’s buys US$2,5 million bread-making equipment

March 2015: Takura Capital buys Lobel’s for US$18 million