adminpartner,” said Zimplow in a note to shareholders.
“The disposal will allow Zimplow Holdings Limited to streamline its operations and focus on its key strategic objectives. The directors obtained an independent opinion from advisors that the terms of the transaction are fair and reasonable to the company shareholders.”
Puzey & Payne has been crippled by the influx of cheap second-hand vehicles, imported mostly from Japan.
The business is essentially a motor vehicle, spares and generators dealer which is also involved in servicing vehicles. The company is one of the holders of a Peugeot dealership in the country.
The viability of new vehicles market has in the recent past been compromised by the influx of used vehicles mostly from Japan that land on the domestic market at hugely discounted prices compared to those of new cars.
Coupled with lack of flexible credit terms and stringent conditions for obtain bank loans buying a new vehicle is extremely difficult for the majority of Zimbabweans even those with modest incomes.
Last month, Quest Motors said the resuscitation the Mutare motor assembly plant was being hampered by the slow uptake of its new range of Chinese vehicle models.
The company unveiled the Chery, Foton and JMC vehicle models following a US$2,5 million investment that went towards the manufacture of jigs used to assemble the bodies for these respective cars.
Online Reporter