Business / Companies
Aico Africa moots business recapitalision through demerger
31 Aug 2012 at 00:31hrs | Views
A possible demerger of the SBUs: Nkomo, right, with Devenish
Aico Africa is currently undertaking a series of transactions which will result in all its SBUs being adequately capitalised through a possible demerger of the SBUs, chairman Bekithemba Nkomo told the AGM.
He said the group had looked at all the options to recapitalise over the past few years â€" a rights offer, debt, quasi-equity instruments, self recovery and with strategic partners â€" none of which had yielded the desired result to retire Cottco's debt.
"We are positive that where we are going is the way forward that will see the SBUs being adequately capitalised."
More information would be forthcoming when it was time for shareholder approval and a cautionary would be appearing in the press on August 31.
Providing an update on the performance of the SBUs, CEO Pat Devenish said Cottco's volumes would be 30%-50% ahead of last year, but profits would be at a similar level. SeedCo was in good shape but was still hoping the biggest debtor - government - would settle its arrears.
Olivine was still battling due to a lack of working capital, but was performing significantly better than last year. Its turnaround depended entirely on the expected injection of capital with the recaptalisation. Scotco had been closed down, while Exhort had 5 potential buyers, but none had produced the cash. Fortunately Exhort's maintenance costs were low, he added.
Shareholders approved directors fees of $170 880 and remuneration of $14 260 for auditors KPMG.
He said the group had looked at all the options to recapitalise over the past few years â€" a rights offer, debt, quasi-equity instruments, self recovery and with strategic partners â€" none of which had yielded the desired result to retire Cottco's debt.
"We are positive that where we are going is the way forward that will see the SBUs being adequately capitalised."
More information would be forthcoming when it was time for shareholder approval and a cautionary would be appearing in the press on August 31.
Providing an update on the performance of the SBUs, CEO Pat Devenish said Cottco's volumes would be 30%-50% ahead of last year, but profits would be at a similar level. SeedCo was in good shape but was still hoping the biggest debtor - government - would settle its arrears.
Olivine was still battling due to a lack of working capital, but was performing significantly better than last year. Its turnaround depended entirely on the expected injection of capital with the recaptalisation. Scotco had been closed down, while Exhort had 5 potential buyers, but none had produced the cash. Fortunately Exhort's maintenance costs were low, he added.
Shareholders approved directors fees of $170 880 and remuneration of $14 260 for auditors KPMG.
Source - zfn
