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Herbert Nkala to exit OK Zimbabwe in restructuring move
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OK Zimbabwe has announced a major leadership reshuffle and a US$30.5 million capital-raising initiative aimed at stabilising operations and restoring market confidence, as the retail giant battles internal mismanagement and external market distortions.
Interim chief executive officer Mr Willard Zireva will assume the role of executive chairman when long-serving board chair Mr Herbert Nkala steps down at the company's forthcoming Annual General Meeting. Nkala will be joined in his departure by fellow board members Ms Rose Mavima, Mr Tawanda Gumbo, and Mr Wonder Nyabereka.
Zireva, a seasoned executive who led the company for over two decades, was temporarily reappointed CEO in April as part of an emergency restructuring that also saw the return of Mr Alex Siyavora as chief financial officer and Mr Muzvidzwa Chingaira as supply chain director. The appointments followed the voluntary departure of former CEO Mr Maxen Karombo, CFO Mr Phillimon Mushosho, and supply chain director Mr Knox Mupaya.
A source close to the board said Zireva will serve as executive chairman for three years to guide the company through a critical transition period.
"The current executive management, comprised of experienced former executives, will remain until the end of the financial year. A new substantive team will be appointed thereafter to implement a new strategy with operational rigour," the company said in a circular to shareholders.
As part of its stabilisation plan, OK Zimbabwe unveiled a capital-raising initiative targeting US$30.5 million, of which US$20 million is expected from a renounceable rights offer and US$10.5 million through the disposal of selected properties.
The rights offer will involve the issuance of 1.83 billion new ordinary shares, with shareholders entitled to 1.37 new shares for every share held as of the July 21, 2025, record date. Shares are priced at US$0.0109 each, reflecting a 15 percent discount to the 30-day volume-weighted average share price as of May 23, 2025. All payments must be made in US dollars.
Shareholders representing 73 percent of the company's equity have already committed to the rights offer, contributing US$23.74 million through underwriting and irrevocable commitments. The National Social Security Authority, Datvest Nominees, and Old Mutual-collectively holding 37 percent of the company-have guaranteed their rights and underwriting shares with bank letters confirming US$16.54 million in backing.
The remaining US$5.4 million balance will be targeted from other shareholders and market participants. To avoid triggering a mandatory offer under Zimbabwe Stock Exchange regulations, the underwriting structure ensures that no single entity will exceed a 35 percent stake post-offer.
The rights offer opens on July 21 and closes on August 4, 2025.
In parallel, OK Zimbabwe will dispose of immovable assets valued at US$10.5 million. Properties currently occupied by the company will be sold on condition of lease-back agreements, while the company focuses on disposing of high-value, marketable assets under prevailing market conditions.
The restructuring comes as OK grapples with significant operational challenges. Internally, the company cites poor capital allocation, inefficient cash flow management, and slow creditor engagement, alongside delayed market adaptation and underwhelming expansion strategies.
Externally, the retailer has struggled with an uneven playing field dominated by informal and unregulated supply chains.
As of February 28, 2025, OK Zimbabwe's overdue obligations had swelled to over US$30 million. Of this, US$24 million is owed to suppliers, US$5.12 million to service providers and contractors, and US$880,000 in unpaid statutory dues.
Despite the pressures, the company's leadership believes the current reforms and capital injection will position OK Zimbabwe for long-term recovery and growth.
"The reconstituted board will provide renewed oversight and enhanced governance capabilities," the circular stated, signalling a fresh start for one of Zimbabwe's most iconic retail brands.
Interim chief executive officer Mr Willard Zireva will assume the role of executive chairman when long-serving board chair Mr Herbert Nkala steps down at the company's forthcoming Annual General Meeting. Nkala will be joined in his departure by fellow board members Ms Rose Mavima, Mr Tawanda Gumbo, and Mr Wonder Nyabereka.
Zireva, a seasoned executive who led the company for over two decades, was temporarily reappointed CEO in April as part of an emergency restructuring that also saw the return of Mr Alex Siyavora as chief financial officer and Mr Muzvidzwa Chingaira as supply chain director. The appointments followed the voluntary departure of former CEO Mr Maxen Karombo, CFO Mr Phillimon Mushosho, and supply chain director Mr Knox Mupaya.
A source close to the board said Zireva will serve as executive chairman for three years to guide the company through a critical transition period.
"The current executive management, comprised of experienced former executives, will remain until the end of the financial year. A new substantive team will be appointed thereafter to implement a new strategy with operational rigour," the company said in a circular to shareholders.
As part of its stabilisation plan, OK Zimbabwe unveiled a capital-raising initiative targeting US$30.5 million, of which US$20 million is expected from a renounceable rights offer and US$10.5 million through the disposal of selected properties.
The rights offer will involve the issuance of 1.83 billion new ordinary shares, with shareholders entitled to 1.37 new shares for every share held as of the July 21, 2025, record date. Shares are priced at US$0.0109 each, reflecting a 15 percent discount to the 30-day volume-weighted average share price as of May 23, 2025. All payments must be made in US dollars.
Shareholders representing 73 percent of the company's equity have already committed to the rights offer, contributing US$23.74 million through underwriting and irrevocable commitments. The National Social Security Authority, Datvest Nominees, and Old Mutual-collectively holding 37 percent of the company-have guaranteed their rights and underwriting shares with bank letters confirming US$16.54 million in backing.
The rights offer opens on July 21 and closes on August 4, 2025.
In parallel, OK Zimbabwe will dispose of immovable assets valued at US$10.5 million. Properties currently occupied by the company will be sold on condition of lease-back agreements, while the company focuses on disposing of high-value, marketable assets under prevailing market conditions.
The restructuring comes as OK grapples with significant operational challenges. Internally, the company cites poor capital allocation, inefficient cash flow management, and slow creditor engagement, alongside delayed market adaptation and underwhelming expansion strategies.
Externally, the retailer has struggled with an uneven playing field dominated by informal and unregulated supply chains.
As of February 28, 2025, OK Zimbabwe's overdue obligations had swelled to over US$30 million. Of this, US$24 million is owed to suppliers, US$5.12 million to service providers and contractors, and US$880,000 in unpaid statutory dues.
Despite the pressures, the company's leadership believes the current reforms and capital injection will position OK Zimbabwe for long-term recovery and growth.
"The reconstituted board will provide renewed oversight and enhanced governance capabilities," the circular stated, signalling a fresh start for one of Zimbabwe's most iconic retail brands.
Source - The Herald
