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Businessman Mr Fred Mtanda is the controlling shareholder of the company which is involved in the manufacture and distribution of pharmaceuticals. It also runs St Anne’s Hospital in Harare. The amount owed to CBZ Bank could not be ascertained by the time of going to print.
The assets to go under the hammer on June 14 include its giant factory in Harare’s Southerton industrial area.
The property is comprised of a drug manufacturing plant, a three-storey administration block with 47 offices, kitchen, bar with dispensary sections, packaging section, coldrooms, receiving bays and a clinic.
“Immediately after conclusion of the auction, the highest bidder shall deposit with the auctioneer an amount sufficient to cover the purchase,” said the auctioneer, Clipcrunt Real Estate in a statement yesterday.
Caps used to be the country’s largest drug manufacturing company before it plunged into a financial crisis.
The company had its final trade on the domestic bourse on November 30, 2011. It said then the de-listing would pave way for restructuring of the business that would see new investors coming in to inject fresh capital.
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The pharmaceutical concern ended a 42-year presence on the bourse, trading at US0,10c per share and valued at US$3,5 million.
Cabinet had recommended that Government, through the Industrial Development Corporation of Zimbabwe Limited, save the pharmaceutical giant from collapse by taking over its debts. In April last year, the Deputy Sheriff attached Caps Holdings assets to recover US$4 million owed to CBZ Bank.
In May last year, Caps Holdings chief executive Mr Jealous Nderere told our sister paper, The Sunday Mail, that the company was failing to settle its debts, including paying salaries because it was not making enough money.
“As a company, we are currently going through many difficulties,” he said then. “We are, however, running around and working on the measures to ensure the workers receive their backdated salaries,” he said, adding that shareholders were in the middle of raising cash to finance operations.
The value of the premises to be auctioned could not be immediately ascertained. Other companies and individuals that will have their assets auctioned include Apex Holdings, businessman Mr David Govere and his company Harambe Holdings. Most of the cases involve default on loans from commercial banks.
Online Reporter