Cambria shores up shareholding in Radar

HARARE - Cambria Africa Plc (Cambria) says it is in discussions to increase its shareholding in Radar Holdings (Radar) in a development aimed at hedging the firm against currency uncertainty.

The London-listed firm said its moves at the construction-allied and brick manufacturing company were also in line with realisation that Radar holds a lot of potential in a normal functioning economy.

“Cambria is in discussions to further increase its shareholding in Radar. Should the opportunity arise, the company will rely on the pre-emptive rights of AF Philip to increase its shareholding in Hinshaw which owns 79,65 percent of Radar shares,” Cambria said in a statement appending its 2018 financial year results.

This comes as Cambria last year snapped up a 7,83 percent equity stake in Radar in a $1,6 million deal following amendment of Radar’s articles of association, which had remained aligned to a publicly-traded company prohibiting shareholders to trade or divest from the company in line with Zimbabwe Stock Exchange (ZSE) rules.

Radar was delisted from the ZSE in 2016 following its voluntary application for suspension.

Cambria said due to its market share and strong presence across the region, an investment in Radar was strategic.

“In the opinion of the board, Radar will be a direct beneficiary of any uptick in the Zimbabwe economy through its regional monopoly in brick manufacturing and its significant development land holdings.

“In addition, the Radar investment provides an attractive hedge against the possible deterioration in the purchasing power of cash and cash-equivalents in Zimbabwe,” said Cambria.

The initial acquisition was concluded on August 30, 2018 and was facilitated through the subscription by Paynet of 62,84 percent of the ordinary shares in AF Phillips (Pvt) Ltd and was settled utilising Paynet’s existing cash resources.

AF Phillips holds a 15,6 percent interest in Hinshaw (Pvt) Ltd which, through its wholly owned subsidiaries, holds a 79,65 percent interest in Radar.

Through this transaction, Paynet was entitled to nominate a director to both the Radar and Hinshaw boards.

Radar’s portfolio spans across property, brick making and other sectors.

Radar Properties owns 2 166 hectares in prime development land in Zimbabwe and eight residential properties. Macdonald Bricks is a brick manufacturer with the capacity to produce 91 million bricks per year.

It has a dominant market position in the Matabeleland region in Zimbabwe.

Radar’s most recent published consolidated results for the six month period ended  December 31, 2017 reflected net asset value of $31,5 million, revenues of $3,3 million and profit after tax of $391 000.

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