Creditor turns down Zimglass takeover bid

13 Oct, 2017 - 00:10 0 Views

eBusiness Weekly

Martin Kadzere and Lovemore Zigara
One of the major creditors to the Gweru-based glassmaker, Zimbabwe Glass Industries (Zimglass), has turned down a proposed $1,8 million offer to take over the company.Zimglass, a subsidiary of Industrial Development Corporation (IDC), has been insolvent since 2010 and voluntarily applied for judicial management in 2014 citing lack of capital, debt overhang and mismanagement.
At that time its assets stood at $19, 2 million while liabilities were at $31,2 million. The country’s sole flint glass manufacturer was subsequently liquidated.
It is understood that a local consortium had submitted the bid to revive the glass making company, but some creditors, including bankers said the proposed purchase price fell too short of at least the $10 million required to revive the company.
Judicial manager, Winsley Militala, said while an offer was being considered by stakeholders, one creditor, a banking institution, was opposed to the offer, saying it was too low.
“One offer is currently at hand being considered by the stakeholders. One bank (creditor) has dismissed the offer as too low.
“For confidentiality I cannot disclose the name of the interested party. As stated, we will simply endeavour to find a taker for the company assets,” he said.
Militala would not be drawn to disclose detailed information about the takeover talks and the figures involved. Financial institutions owed money by the Gweru based glassmaker includes the now defunct AfrAsia Zimbabwe, ZB Bank, Agribank and FBC Bank.
Towards the final liquidation of Zimglass last year, Johannesburg Stock Exchange listed Nampak, which specializes in glass, plastics, paper and tin packaging made inquiries in taking over Zimglass.
Nampak asked Zimglass’ balance and financial statements, which were availed the South African based firm.
However, since the expression of interest there was no movement with regards to the earlier inquiries that never materialised.
Before liquidation the firm manufactured glass packaging material for alcoholic and sparkling beverages, food, liquor and pharmaceutical segments.
Its major domestic customers included Delta Beverages, African Distillers, Mutare Bottling Company, Straitia Investments, Olivine Industries, Datlabs and E. Snell and Company. It also exported its products in SADC with demand stretching as far as Egypt.

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