adminMartin Kadzere Senior Business Reporter
A CONSORTIUM of local and foreign investors has made a bid of US$22 million for Homelink Private Ltd, with the company’s management and OK Zimbabwe also said to be in the race to acquire the Reserve Bank stake in the company.
The central bank re-tendered the sale of its 100 percent stake in Homelink in compliance with the Reserve Bank Act which requires it to dispose of its non-core assets.
KM Financial Solutions Ltd were appointed financial advisors for disposal of the assets. Other assets being sold by the RBZ include 70 percent shareholding in Tuli Mine, 50 percent in Transload (Private) Limited, 65 percent equity in Scientific Research and Industrial Development and its 100 percent shareholding in Carslone Enterprises.
The Reserve Bank has already sold its 59 percent stake in the Zimbabwe Stock Exchange-listed Tractive Power Holdings to Zimplow Limited in a deal worth about US$10 million.
Last year, Japanese coating company Kansai Plascon Limited acquired RBZ’s 63 percent shareholding in Astra Industries. It is in the process of selling its 64 percent in Cairns Foods.
The central bank owned the shares through its investment company, Finance Trust of Zimbabwe. According to Reserve Bank sources, the highest bid for Homelink is US$22 million while management is said to have offered US$12 million for Homelink’s 100 percent stake.
OK Zimbabwe, which operates 54 stores, partnered Mukuru.com, a money transfer company and have offered about US$3 million for subsidiary, Easy Moneylink Transfer.
“Four bidders offered for the entire stake of Homelink while a few are bidding for Easy Moneylink,” said a source who cannot be identified because he is not authorised to talk to the media.
No official comment could be obtained from Homelink and RBZ.
Homelink was incorporated in February 2005 with the primary objective of mobilising foreign currency remittances from the Diaspora when Zimbabwe was facing serious foreign currency shortages.
Over the years, the company adapted to the changing business environment and transformed itself into a financial services company.
It has widened its market to include local Zimbabweans. The company is offering a wide range of financial services products, which include home loans, micro-financing, property construction, property management and money transfer services.
Under its portfolio, Homelink runs a housing development scheme, a mortgage financing Scheme for non-resident and locals. The Housing Development Scheme has seen more than 600 Zimbabweans at home and abroad becoming homeowners.
Homelink gives clients 10-year tenure on housing loans. Through the scheme, Homelink has constructed houses as a way of alleviating the shortage of houses in the country.
Easylink Money is Homelink’s brand for money transfer business.
Easylink started operations in May 2010. Easylink works in partnership with a leading and reputable International Money Transfer Agency with an established global network.
In adapting to the changing economic environment, as well as offering clients up to date and relevant products, Homelink introduced our Microlink Short Term Loan facility. Microfinance products offered include personal loans, car loans, educational loans and SME loans.
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