Kaukonde ups Innscor stake

HARARE - Businessman-cum-politician Ray Kaukonde has upped his Innscor Africa Limited (Innscor) shareholding to 9,23 percent — from 2,04 percent — following an approval of the group’s indigenisation plan.

Company chief executive John Koumides told the group’s extra-ordinary general meeting last Friday that shareholders had unanimously endorsed the Zanu PF legislator’s plans to acquire a further 50 million shares in the diversified conglomerate over the next 10 years.

While the transaction makes Kaukonde the single largest minority shareholder in the group,  Koumides also said the group would now benefit from the inflow of new funds, which will be directed towards reducing debt and improving efficiencies.

“It’s now a done deal and we can now move to our plans with certainty,” he said.

Early last year, Innscor was given a seven-day ultimatum by government to submit a comprehensive indigenisation implementation plan after authorities adjudged the group was taking long to comply with the regulations.

Analysts, however, believe that the indigenisation legislation, which forces foreign-owned companies operating in the country to cede 51 percent of their shareholding to locals, is one of the reasons many companies are either pulling out or shutting down.

Koumides said they had settled for the outspoken businessman — as their partner — because of their long standing relationship.

“As in any situations such as choosing a marriage spouse or an empowerment partner, we looked for people whom we can trust.

“Ray has been with us for the past 10-12 years and has contributed tremendously to the group,” he said.

Kaukonde, who at one time was Innscor chairperson, last year reportedly sold his Spar Western region licence and his two flagship stores, Brooke and Joina Spar to the group, although it could not be established how much was involved in the deal.

In the past few years Kaukonde also sold his stake in agro-foods processor, National Foods, to Innscor in exchange for shares in the group.

Shareholders also approved Innscor Africa Employee Share Trust for 30 million ordinary shares, representing 5,54 percent of the issued share capital.

Koumides noted that the trust will be funded over the next 10 years through payments from Innscor by way of an "ex-gratia" dividend representing a maximum five percent of the dividend paid to ordinary shareholders.

The option has 10-year tenure at the volume weighted average price of Innscor over the previous 60 trading days.

Other resolutions that were approved include the waiver of pre-emptive rights in respect of shares for the trust as well as increase in authorised share capital from eight million divided into 800 million ordinary shares of $0,01 each to eight million and ten dollars divided into 800 million shares of $0,01 each and 1000 non-voting class  “A” ordinary shares of $0,01 each.

Comments (7)

welldone going comrade ,good thinking

george mudiwa - 27 January 2014

saka to give one person all those shares is to indigenise the nation. thought it was supposed to be a collective effort for every zimbabwean, the worst thing is its showing that politicians are just trying to make a killing. well one thing is certain God is not a fool. we shall see how the future of your children shall be. rhetoric

indigenise - 27 January 2014

This is the Indeginization model : empowering the rich and connected top ZANU PF people. What a shame. Apa zvima Parastatal CEOs were being used as conduit by ZANU PF to bleed and leak money for ZANU PF .

Mupinyu Wasvotoka - 27 January 2014

i can see that indigenisation is not as it is supposed to especially considering in this case that the shares are bought but an insider and what about us who would have wanted to buy shares in innscor

wezhara - 27 January 2014

This is ZANU-pf model of indiginisation take and give to a few prominent PF chefs, what a shame even INNSCOR itself should be ashamed

Shame - 28 January 2014

And you call that UPFUMI KUVANHU or UPFUMI KUMUNHU>

ICU - 28 January 2014

Bhora mugedhi!!!!!!nyika musango!!!!

chokwadi - 1 February 2014

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