eBusiness Weekly
26 eye IDCZ fertiliser unit n Reviewing of bids underway
Martin Kadzere
Twenty-six foreign and local investors have expressed interest in acquiring shareholding in Chemplex, Zimbabwe’s largest fertiliser company, a senior official said.
Recently, the IDCZ invited bids from investors through a “Request for Expressions of Interest” notice as part of the group’s “Four D” strategy of diluting, disposing, dissolution and development of IDCZ investments approved by the board.
IDCZ’s bigger investments also up for dilution or disposal are Sunway City, the industrial and property company, Willowvale Motor Industries and Deven Engineering.
The firm will, however, retain and develop some of its investments where the corporation is a minority shareholder such as Sino-Zimbabwe Cement and Surface Investments.
Overwhelming response
Ben Khumalo, the general manager of the Industrial Development Corporation Zimbabwe, the owner of the Chemplex Corporation, told Business Weekly in an interview that the company was now in the process of reviewing the expression of interests.
“We are absolutely happy with the companies that have expressed interest,” he said.
“These are companies of substance . . . (and) the response exceeded expectations.”
The winning investor is expected to inject additional capital estimated at $80 million into the business, bring in new technology and open wider markets for the business.
Khumalo could, however, not be drawn into giving timelines on when the adjudication process would be complete.
Chemplex has five main operating divisions — Dorowa Minerals, Zimbabwe Phosphate Industries Limited (ZimPhos), Chemplex Marketing, Chemplex Animal and Public Health (CAPH), and G. D. Haulage. ZimPhos is the country’s sole producer of sulphuric acid, aluminium sulphate used in municipal water treatment, and superphosphates, used in the production of phosphate fertilisers.
Dorowa is Zimbabwe’s only phosphate mine while Chemplex Marketing imports a wide range of chemicals for the mining, plastics, food, horticultural, water and other industries.
Recently, IDCZ sold its 49 percent equity in Stone Holdings while negotiations for the disposal of Allied Insurance and Zimbabwe Grain Bag are in progress, IDCZ said recently.
Transformation for D F I role
IDCZ is being transformed into a fully-fledged development finance institution and the process entails restructuring of its balance to position the corporation for the DFI role.
IDCZ is a Government private sector investment vehicle for strategic business units.
In its current form, the IDCZ is a conglomerate saddled with huge legacy debts, but the aim is to create a new transformed institution with an acceptable debt to equity ratio focusing on promoting industrialisation through development finance.
This will be done through the operationalisation of the Industrial Development Fund.
