eBusiness Weekly
Fradreck Gorwe
Zimbabwe Stock Exchange (ZSE)-listed diversified company, Amalgamated Regional Trading Holdings (ART), had been in operation for decades in the paper and packaging sector. It grew through various rationalisation strategies as well as acquisitions and mergers.
The company manufactures and distributes papers, ballpoint pens, lead acid batteries and sanitary products. It also provides forestry resources management services. Products are distributed locally and across Southern Africa.
Subsidiaries include Chloride Zimbabwe, Exide Express, Eversharp, Mutare Board and Paper Mill, National Waste Collections, Kadoma Paper Mills, and Softex tissue products.
ART Holdings was incorporated as Beachmont Trading Limited in 1997. In September 1996 the group had acquired Mutare Board and Paper Mills, through a rights issue that had raised $200 million.
Pursuant to the incorporation, the company became a wholly owned subsidiary of Trans Zambezi Industries Limited (TZI), a continental conglomerate then.
TZI had interests in Art Investments (Mauritius) Limited and Chloride Central Africa Limited. Chloride CA Limited owned the group’s distribution business in Zambia, Malawi and South Africa.
In 1997, ART acquired 50 percent of Flexmail stationary. The acquisition further housed a plastic operation called Saltrama, which was briefly shelved to rationalise operations. Upon revival Saltrama was renamed Mukundi Plastics.
The Kadoma Tissue Mill was also acquired in 1997. The Battery making division, Chloride Zimbabwe, was acquired at the close of 1997 as part of the reorganisation of TZI’s industrial holdings. In 1998 Chloride reintroduced the Exide brand, originally introduced in 1963.
In 1999 the Croxely and Tudor brands were reintroduced in the country under Fleximail Stationary. During the last quarter of 2000, the group acquired the Eversharp Division.
Mukundi plastics division was sold to its management in 2001 to ensure job security of all employees in the division.
The name change from Beachmont Trading to Art Holdings following a special resolution by shareholders in 2001.
On September 30, 2001 ART Holdings was demerged from TZI after it acquired the latter’s interests in its wholly owned subsidiaries Art Investments (Mauritius) Limited and Chloride Central Africa Limited.
ART Holdings got listed on ZSE by way of introduction in June 2002 after TZI diluted its shareholding in the company to 79 percent.
Focus was then shifted to regional expansion with the launch of new distribution units in the name of DC Powerpax South Africa, Chloride Malawi and Chloride Zambia.
Effective 2002, Mutare Forest Estates became subjected to the Land Acquisition and Distribution drive since its portion was listed for resettlement purposes. This ignited a win-win dialogue with key stakeholders. The subsidiary, however, continued to provide pulpwood for the newsprint machine.
In 2007, new equipment was acquired for Exide Express, a battery manufacturing and distribution subsidiary. There was also major retooling at Mutare forests and capacity restoration initiatives at the Mutare paper mill. Solar Express was also established in 2007 as the company sought diversification into new products.
In 2010, ART leveraged on economic stability post dollarisation and raised $4,4 million through a rights issue. The capital went towards debt clearance and replacement of the Chloride lead smelter, which was commissioned the same year.
During the same year the group pursued a rationalisation exercise to get rid of less profitable operations. Accordingly, the South African battery distribution unit, Flexwaste Zambia and Mutare Board and Paper Mills were closed. In 2011 Flexmail Zimbabwe was closed whilst Fleximail Malawi and Chloride Malawi were sold.
In 2013 the Mutare Mill’s land and buildings, initially held for sale, were reclassified as investment property.
In the same year, 2013, a Korean firm, Taesung Chemical Company Limited, acquired shareholding in ART Holdings through its three investment vehicles, Cranbal Investments, Silvermine Investments, and Zadmab Limited. By 2015 Taesung had acquired majority shareholding, making ART Holdings a wholly owned subsidiary of the former.
In 2015, the group commissioned a $3 million Battery factory at Chloride Zimbabwe with fresh focus on retooling and equipment upgrade.
Currently, the group pivots towards growth of the export business as well as the implementation of strategies to preserve value in the face of a challenging operating environment as afore-stated in the 2019 half year report.
The group held a market Capitalisation of $41 949 826 and a share price of 9.60 cents as updated December 16, 2019. Milton Pedzi Macheka is the current group chief executive officer.
