BY MTHANDAZO NYONI CAMBRIA Africa Plc, the London-listed investment outfit with significant interests in Zimbabwe, says it is putting its 7,83% shareholding in brick maker, Radar Holdings on sale after failing to “exercise constructive control”.
This is a type of control that is exercised by the operation of law.
The firm, which trades its stock on the London Stock Exchange’s Alternative Investments Markets, said should a suitor be found, a possible deal would see US$1,7 million exchanging hands.
It means Cambria would gain US$100 000 out of an investment that it acquired for US$1,6 million about four years ago.
“Another component of the company NAV (net asset value) is its indirect shareholding in Radar. Having failed in our bid to exercise constructive control, the company is actively pursuing avenues to sell its interest in Radar,” Cambria chief executive Samir Shasha said.
“If successful, such a sale will earn the company about US$1,7 million less costs. The company will only sell its investment if it can achieve value at the holding level. The investment is robust and if a sale is not achievable in this fiscal year, the company is confident that the holding will preserve its value.”
A statement from Cambria also said Radar remained a viable business and should it fail to strike a deal, it would still unlock value out of the investment.
Brick makers, along with cement producers, are enjoying a fine run in Zimbabwe, despite a long-running economic downturn.
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Apart from its Radar shareholding, Cambria’s Zimbabwean interests include Payserv, along with Millchem, one of the country’s leading distributors of industrial solvents and metal treatment products.
Payserv is the country’s leading provider of payments and business process outsourcing services targeted at financial and related sectors.
The group comprises four business units, Paynet Zimbabwe, AutoPay, Loanserv and Softserv.
Radar has interests in the construction, allied and brick manufacturing sector.
Cambria entered Radar through a subscription by Paynet of 62,84% of the ordinary shares in AF Phillips (Pvt) Ltd, which was settled through Paynet’s cash resources.
AF Phillips holds a 15,6% interest in Hinshaw (Pvt) Ltd, which, through its wholly-owned subsidiaries, holds a 79,65% interest in Radar.
Through this transaction, Paynet was entitled to nominate a director to both the Radar and Hinshaw boards.
According to Cambria, Radar Properties owns 2,166ha of prime development land in Zimbabwe and eight residential properties.
It says Macdonald Bricks, which is controlled by Radar, is a brick manufacturer with the capacity to produce 91 million bricks per year.
It has a dominant market position in Zimbabwe’s Matabeleland region.
At the time of acquisition in 2018, Cambria disclosed that it was keen to increase its Radar stake should more shares become available.
Radar delisted from the Zimbabwe Stock Exchange (ZSE) in 2016 following its voluntary application to suspend trades, one of an army of ZSE-listed firms that left the bourse at the time, citing high listing costs.
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