PG Industries restructuring concluded as Dewei becomes major  shareholder

01 Nov, 2018 - 15:11 0 Views
PG Industries restructuring concluded as Dewei becomes major  shareholder

eBusiness Weekly

HARARE – PG Industries said on Wednesday  it has completed its restructuring programme after paying about $10  million to creditors, paving way for its takeover by Indian firm, Dewei  Investments, which is expected to inject new capital into the company.

Hit by financial challenges, PG Industries was suspended from trading  on the Zimbabwe Stock Exchange in 2014.

Some in the market contended that the firm, which manufactures and  distributes building materials, was insolvent.

The company was put under a High Court sanctioned revival programme  that among others, saw it closing down some of its branches and  retrenching.

It worked on a payment schedule for its creditors that saw the company  over time paying statutory creditors $3.766 million, secured creditors $1.644 million, preferred creditors $1.184 million, con-current local  creditors $2.731 million and foreign creditors $117 648.

About $500 000 has been set aside for old PG Industries shareholders  who will be paid when they surrender their share certificates, which  will be cancelled pending issuance of new ones.

“Since all creditors in the secondary scheme and following transfer of  funds to pay all shareholders, First Transfer Secretaries have cancelled  all shares held by existing shareholders and are proceeding to issue new  shares to Dewei Investments,” the company said.

“Dewei Investments will own 100 percent of PG shares.”

Dewei is expected to inject new capital into the company. – New Ziana

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