Oliver Kazunga, Senior Business Reporter
THE Industrial Development Corporation of Zimbabwe (IDCZ) is seeking strategic partners to invest in its two subsidiaries, Willowvale Motor Industries and Deven Engineering.
IDCZ is an industrial investment arm of Government targeting mainly the manufacturing sector and of late has been working in collaboration with the State Enterprises Restructuring Agency (SERA) to unbundle some of its subsidiaries.
This is in line with the Government’s restructuring and reform of State-owned enterprises and parastatals programme that seeks to transform underperforming entities.
Under the initiative, the Government has lined up 41 entities for privatisation, departmentalisation and listing on the Zimbabwe Stock Exchange. IDCZ yesterday said it was seeking strategic partners and invited those keen to invest in the two subsidiaries to dilute the existing shareholding of up to 74 percent in each of the two companies.
“IDCZ working in collaboration with SERA wish to invite strategic partners to invest in Willowvale Motor Industries (WMI) to dilute current shareholders up to 74 percent,” said IDC in one of the notices inviting potential investors.
WMI was established in 1961 and is owned 91 percent by IDCZ with the remaining nine percent shareholding held by a workers’ trust.
WMI is involved in sales of completely built-up vehicles (presently Mazda and Mahindra) and is also assembling BAIC pick-up trucks from Semi-Knocked Down (SKD) kits.
“It has installed capacity for production of light to heavy duty trucks, buses and agricultural tractors. WMI has capacity to benefit from reduced duties for SKD kits provided for under the country’s Motor Industry Development Policy and Statutory Instrument 136 of 2016,” said IDC.
It also indicated that it was seeking prospective strategic equity partners to invest in Deven Engineering, also diluting existing shareholders up to 74 percent. Deven Engineering was incorporated in Zimbabwe in 1996 having been in existence as Brockhouse since 1961. The engineering firm is owned 100 percent by IDCZ.
“Deven Engineering’s core competence is truck and bus body manufacturing done on a rolling chassis or from SKD kits.
“It also manufactures various road trailers, tankers and specialised vehicle bodies such as compactors, dumpers, tippers, refuse trucks and carry out repair work.
“In general engineering, Deven Engineering has expert capabilities and facilities for steel fabrication, cutting and bending, rolling of steel sheet, on edge rolling of channel, angle iron and steel pipe bending,” said IDCZ.
Interested investors are required to submit their bids providing among others their companies’ profile, ownership structures, names of directors, latest audited financial statements, as well as proof or demonstration of capacity to provide financial backing for the potential transaction by June 21, 2019.
Recently, IDCZ invited expressions of interest in its subsidiaries that include Chemplex Corporation and the Zimbabwe Grain Bag.
It has also disposed of its shareholding in Almin Metal Industries and Stone Holdings as part of a restructuring process to be completed this year. — @okazunga