Business / Companies
PG shareholders approve the disposal of 27.9% stake in Manica
12 Dec 2012 at 10:30hrs | Views
Munyati, left with Chairman Lutz
PG Industries shareholders have voted for the disposal of the 27.9% stake in Manica Boards & Doors and the sale of properties that are in excess of group operational requirements at an EGM held this morning.
The sale of a 27.9% equity stake in MBD for a total consideration of $2.9 million (as of 30 June 2012) will see $1.35 million being used to decrease a debt that is held by MBD.
The difference together with an expected $5.15 million to be raised from the sale of all properties that are not being used in on-going operations, which Chairman Friedbert Lutz termed "excess properties", will be used to pay-off some of the short term debt in PG and also part of the accounts/trade payables.
Some of the proceeds are expected to be used to increase the tile plant capacity to 40 000 tiles from the current 22 000 by the acquisition of extra tile pallets.
Besides the pallet shortage Zimtile has no other operational challenges and should the sales go through and the investments be done, the tile business is likely to increase its topline.
The total market demand for concrete roofing tiles is around 15 0000 but the whole tile industry in Zimbabwe is currently producing 80 000 tiles, management said.
The sale of a 27.9% equity stake in MBD for a total consideration of $2.9 million (as of 30 June 2012) will see $1.35 million being used to decrease a debt that is held by MBD.
The difference together with an expected $5.15 million to be raised from the sale of all properties that are not being used in on-going operations, which Chairman Friedbert Lutz termed "excess properties", will be used to pay-off some of the short term debt in PG and also part of the accounts/trade payables.
Besides the pallet shortage Zimtile has no other operational challenges and should the sales go through and the investments be done, the tile business is likely to increase its topline.
The total market demand for concrete roofing tiles is around 15 0000 but the whole tile industry in Zimbabwe is currently producing 80 000 tiles, management said.
Source - zfn
