Econet Wireless not selling MBC

Econet Wireless has reaffirmed its commitment to its investment in Mutare Bottling Company, seeing through the installation of a $17 million new line and factory, which will boost the firm's ability to service the southern region franchise.

MBC chairman, who is also chief executive for Econet Capital M John Gould said the decision to make further investments is proof of the confidence the group has in the bottling company, which would in turn contribute to the telecoms company bottom line.

MBC is owned 69 percent by Econet through Pentamed Investments, including a 6 percent shareholding in the form of convertible instruments.

The remainder is owned by the Goldberg family, which were the founders of the company in 1950. The new line from Italy, Sidel SpA is more efficient from a capacity perspective producing 1 250 cases per hour in a nine hour shift.

The plant has the capability to bottle a range of RGB packages including 300 millilitre and 1 litre bottles. Finance manger and deputy MD Brian Maphosa said all in all the group will realise cost savings of around 15 percent.

The $17 million capital had been obtained from PTA Bank and MBCA. The PTA loan at $8,8 million was a four-year facility at a cost of 10 percent. Maphosa noted that the company had, however, been given a two-year grace period.  

MBCA had provided $4 million short-term facility while the balance was from internal resources.