IDC to dispose Amtec stake

HARARE - Distressed Industrial Development Corporation of Zimbabwe (IDC) is disposing its 55 percent stake in Amtec Private Limited (Amtec) for an undisclosed sum.

This comes after government — the major shareholder in IDC — recently approved the disposal of nine of the parastatal’s subsidiaries as part of a turnaround strategy.

Under the plan, IDC intends to sell the subsidiaries to both local and external investors in line with its mandate of developing companies.

“Proceeds of the sale will be utilised to fund new ventures in line with the IDC’s mandate that entails establishing new industries and facilitating, guiding and promoting the financing, reorganisation and development of existing industries,” said IDC yesterday.

One of IDC’s co-shareholders in Amtec, Inchcape Plc, holding 14,9 percent, has also made a decision to divest from the vehicle servicing company.

Amtec has a history dating back to 1953 and currently has five branches in centres across the country namely Harare, Bulawayo, Mutare, Gweru and Chiredzi. Fast-tec and Hino Zimbabwe are its subsidiary companies.

The sale of Amtec comes at a time when IDC requires significant fresh capital to recapitalise its operations, but raising the funds has been challenging due to the tight liquidity situation that is pervading the domestic economy.

Mike Ndudzo, the IDC general manager recently said the industrial company was seeking ways to assist struggling companies that are of strategic importance to the economy and these include Caps Holdings, Olivine, Zimphos, Zimglass and companies in the paper, motor, textile and leather industries.

Businessdaily is reliably informed that some local and foreign investors have expressed an interest in acquiring shares in the IDC business units.

“We have long been searching for potential investors for our subsidiaries, however, now that there is policy clarity on indigenisation, we are confident that from now on things will start shaping up and the corporation hopes to attract registered investors from within and outside the country,” said Ndudzo.

Some of the IDC subsidiaries targeted for disposal include Stone Holdings, Deven, G and W, Almin Metal Industries, Surface Investments, National Fertiliser Industries, Zim Copper and Zimbabwe Grain Bag.

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