Metbank has 'no interest in Interfresh'

Metbank does not intend to keep its recently acquired 32 percent stake in citrus business company Interfresh Ltd as plans are under way to offload the stake to a strategic partner, a senior bank executive has said.

In an interview with The Sunday Mail Business last week, Metbank executive director investment banking Mr Felix Kumirai said the bank had no interest in Interfresh at all beyond fees earned from underwritting the latter's poorly subscribed US$3 million rights offer last month.

Now the bank, which agreed to underwrite the offer despite the real risk of mopping up Interfresh's unwanted shares, will offload the stake in the loss-making business.

"We have no interest in Interfresh, it is not our core business and has little to do with our strategic plans as a bank. As underwriters, we did our part. Today we can do underwriting for a mining company, the next day for something else - just the intermediary role - then look for takers to buy that remaining stake.

"When you do business, you take calculated risks; we did our analysis and research, we are happy not only with the transaction itself but what was going on in the market. We have played our role as a bank," said Mr Kumirai.

Mr Kumirai, however, believes that Interfresh's fortunes will turn the corner in the long term.

"You look at your customers and see why they are not doing well, which in most cases is lack of capital. We are happy that with the injection of capital, we will see a very strong Interfresh going forward," he said.

As underwriters of the rights issue, which closed on August 28, Metbank ended up snapping up 63,7 million shares of the horticultural concern at a cost of US$1,3 million after only 57,5 percent of Interfresh's existing shareholders followed their rights.

Interfresh floated 150 million shares at a subscription rate of 2 cents each, bringing its total issued share capital to 198,9 million shares.

The company seeks to raise additional working capital to improve solvency and retire debt.

As a result of the share issue, Interfresh majority shareholders were diluted.

Before Drove Gate Investments held 33,08 percent, followed by Old Mutual Life Assurance Company with 19,48 percent and Msasa Nominees with 15,67 percent.