Dewei Investments concludes PG Industries takeover

23 Oct, 2018 - 12:10 0 Views
Dewei Investments concludes PG Industries takeover

eBusiness Weekly

Tawanda Musarurwa

HARARE – Indian firm Dewei Investments PG Industries take-over is set to be completed this month after the deal was registered by the Registrar of Companies on October 19, 2018.

In 2016, Dewei Investments entered into an agreement with PG Industries to take over the entire issued share capital of the struggling construction materials firm for $500 000 after shareholders approved the transaction.

Part of the deal was that Dewei would pay all of PG’s creditors by November 30, 2016, but it failed to meet that initial deadline. Another payment deadline set for October 2017 was also missed.

PG Industries has now announced that the Secondary Scheme of Arrangement has now met the final condition precedent.

”Scheme members are hereby advised that the PG Industries (Zimbabwe) Limited Secondary Scheme of Arrangement was registered by the Registrar of Companies on 19 October 2018.

“In terms of the Scheme, payments to scheme members and creditors will be made within five days after fulfillment of the last condition precedent. Registration of the Scheme by the Registrar of companies is the last condition to be fulfilled,” said PG Industries company secretary Kudakwashe Waniwa in the latest update.

“The company is proceeding to make payments based on amounts owing as at December 31 2015 as per Scheme terms. Payments will be made as approved at the Scheme meetings on 15 September 2016 as follows: shareholders will be paid 0.0058 cents per share; secured lenders will be paid amounts owed as at December 31, 2015 less a 10 percent discount; preferred creditors will be paid 100 percent of the stated amounts; concurrent creditors will be paid 19,7575 cents per dollar as at December 31, 2015 as full and final settlement  of amounts owed as at that date.”

Dewei Investments has since committed to provide new working capital and funds required for retooling the company.

The Second Scheme of arrangement was sanctioned by the High Court in July 2016.

Prior to that PG Industries had been under an initial High Court-sanctioned Scheme of Arrangement since April 2015 aimed at protecting its assets while it sought to restructure its debts.

But despite initial plans to start making quarterly payments to unsecured creditors in October 2015, the company announced during the same month that it was unable to make the payments to concurrent creditors due to cash flow constraints, and was in negotiations with a “prospective investor” (which turned out to be Dewei Investments) for re-capitalisation.

PG Industries’ shares were suspended from trading on the Zimbabwe Stock Exchange (ZSE) in 2013.

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