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Zimplow Holdings Limited has offloaded motor vehicle dealer Puzey & Payne as the farming implements manufacturer and distributor moves to concentrate on core business. Zimplow sold loss making Puzey & Payne for an undisclosed sum to its current management who have partnered with a “strategic partner” in a deal described by the seller as “fair and reasonable.”
Puzey & Payne was previously a subsidiary of Tractive Power Holdings Limited (TPHL) which was earlier this year acquired by Zimplow.
“The disposal will allow Zimplow Holdings Limited to streamline its operations and focus its key strategic objectives,” Zimplow said in an update to the market.
Zimplow advised its intention to sell Puzey & Payne in the first half of the year as part of several restructuring programmes aimed at unlocking shareholder value.
Puzey & Payne has since dollarisation of the economy in 2009 struggled to improve its performance as cheap vehicle imports from Japan began making inroads into the country.
Several other local motor vehicles companies including Willowvale Mazda Motor Industries are struggling as individuals opt for cheaper second hand imported cars.
Puzey & Payne is also a holder of a Peugeot dealership in the country.
While imported second had vehicles cost around $6 000, new vehicles cost as much as $30 000.
Talks for the disposal of Puzey & Payne began before the acquisition of TPH by Zimplow.
Following its acquisition of TPHL, Zimplow is trying to maintain focus on business to enable the company to hit its target of $100 million turnover by 2015. — New Ziana
Online Reporter
derick.khumalo