Business / Companies
IDC sells stake in Amtec
13 Dec 2016 at 19:05hrs | Views
State-owned firm the Industrial Development Corporation (IDC) has diluted its controlling stake in car dealership firm Amtec Holdings from 56 percent to 27 percent in exchange for fresh capital injection.
The transaction is being made after a resolution by the IDC board of directors to focus on viable investments while enabling private investors to take part in key economic enablers of the economy.
It also comes at a time when Amtec is struggling against the influx of imported vehicles, thereby requiring funds to boost its capital position.
Information obtained by the ZBC News from the IDC this Tuesday indicates that the dilution of the controlling stake is also expected to facilitate future viability operations by the provision of fresh capital.
The corporation says the transaction will among other factors enable the parastatal to fully implement its turnaround plan aimed at retiring debts.
It is expected to pave way for the IDC to consider new productive investments to increase shareholder value.
The IDC says Amtec requires $2.1 million of which $1.35 million is for working capital and $75 million is for the purchase of equipment to enhance service delivery.
Source - zbc
