IDCZ to exit Chemplex Corporation

HARARE - The Industrial Development Corporation of Zimbabwe (IDCZ) is inviting financial advisors to lead the sale of Chemplex Corporation Limited, one of its subsidiaries.

In a Government Gazette published on Friday last week, IDCZ sets out a range of requirements for the would be financial advisor to lead the investor search and dilution of its 100 percent shareholding in Chemplex on a success fee basis.

“The investor is expected to inject additional capital in the business, bringing in new technology and access to wider markets for the business,” the Gazette reads.

“The individual or company must have the following (i) a minimum five years’ experience in providing financial advisory services (ii) demonstrate experience in handling strategic investor search and company restructuring (iii) experience in investment valuations and capacity to provide legal services will be an added advantage.”

The self-financing, national Development Finance Institution (DFI) added that expressions of interest should be submitted to Procurement Regulatory Authority of Zimbabwe, Fifth Floor, Old Reserve Bank of Building 76 Samora Machel Avenue in Harare not later than 10am on February 13.

Chemplex Corporation is Zimbabwe’s largest fertilizer and chemicals manufacturing company.

Chemplex entered the Zimbabwean scene in 1924 when AE&CI — a South African company then owned in equal shares by De Beers Consolidated Mines Limited and Nobel Industries Limited — opened a sales and distribution office in Bulawayo to supply the mining industry with explosives, sulphuric acid, and hydrochloric acid among other products.

In those days Nobel used to make hydrochloric acid by mixing sulphuric acid with salt.

AE&CI had a solid reputation for maintaining a chemical services department, staffed by qualified and experienced industrial chemists, to provide free technical advice and assistance in connection with the chemicals sold by the company.

Chemplex has nurtured this reputation throughout the years.

In 1990, AECI sold Chemplex.

Chemplex has five main operating divisions — Dorowa Minerals, Zimbabwe Phosphate Industries Limited, Chemplex Marketing, Chemplex Animal and Public Health, and G. D. Haulage.

ZimPhos is the country’s sole producer of sulphuric acid, aluminium sulphate (used in municipal water treatment), and super phosphates (used in the manufacture of phosphatic fertilisers).

The company’s largest strategic business unit is the fertiliser industry where it is the outright market leader.

It owns 50 percent of Zimbabwe Fertiliser Company, 36 percent of Sable Chemicals, 100 percent of Zimbabwe Phosphate Industries Limited, and 100 percent of Dorowa Minerals.

Its parent company, IDCZ is a self-financing DFI, established in 1963 through an Act of Parliament, (Chapter 14:10).

It is wholly-owned by the Government of Zimbabwe and accordingly is a State enterprise.

The IDCZ, however, is unique in that it was commercialised from its inception as it is also registered in terms of the Companies Act (Section 3) of Zimbabwe.

The corporation is a limited liability.

The IDCZ’s role in the economy is to add value through industrial processes and capital formation (foreign direct investment) to create wealth, employment and industrial development in Zimbabwe.

The IDCZ Act allows the corporation to promote investment and economic co-operation across all borders.

The Act stipulates that all undertakings of the corporation be considered strictly on their economic merits.

Accordingly, the corporation is specifically prohibited from serving a purely social or benevolent function.

It is therefore required to operate on a financially self-sustaining basis, irrespective of other considerations or whatsoever.

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