IDC cedes Olivine stake to Treasury

IDC cedes Olivine stake to Treasury
Published: 24 August 2017
THE Industrial Development Corporation (IDC) has relinquished its stake in troubled fast moving consumer goods manufacturer, Olivine Industries, to the Ministry of Finance and Economic Development.

The IDC, a diversified conglomerate with interests in a variety of industrial sectors, falls under the Ministry of Industry and Commerce, but is on the verge of being transformed into a development finance institution in terms of proposals recently made by the central bank.

The IDC, which held a 51 percent stake in Olivine, sold 16 percent of its interest to SR Amando of Mauritius to remain with a 35 percent stake in the company, which it then transferred to Treasury.

SR Amando of Mauritius, which is 50 percent owned by Wilmar International, now controls a 44 percent equity in Olivine. Singapore-headquartered agro-business concern, Wilmar International, holds an additional direct 20 percent shareholding in Olivine, while Tonmont Investment controls 1, 38 percent shareholding in the company.

Both Olivine and IDC officials confirmed the development.

"IDC is no longer a shareholder in Olivine but just acting as proxy for government through the Ministry of Finance," Derrick Sibanda, spokesperson for IDC, told The Financial Gazette this week.

"Government, however, has diluted its shareholding in Olivine to remain with a 35 percent stake. About 64 percent is now split between SR Amando and Wilmar International. SR Amando now controls about 44 percent shareholding in Olivine and Wilmar International controlling about 20 percent in the company. About 1,38 percent is controlled by Tonmont Investments, which bought our shareholding when we decided to get out of Olivine because of sanctions."

Olivine's finance manager, Humphrey Shumba, also confirmed the development last week.

"The Ministry of Finance now holds 35 percent shareholding in the company," Shumba said.

"SR Amando and Wilmar International now hold a combined 64 percent shareholding in Olivine. The fact that Olivine is a private company (means that) I am not at liberty to disclose the shareholding split between SR Amando and Wilmar International," he said.

Amando Pte. Ltd, an indirect 91.38 percent owned subsidiary of Wilmar International, holds a direct 50 percent stake in SR Amando, an investment holding company.

The other 50 percent is held by Shamwa Resources, which is not related to the Wilmar Group, according to the company's documents.

Finance and Economic Development Minister, Patrick Chinamasa, and permanent secretary, Willard Manungo, could not be reached for comment.

Olivine is planning to sack nearly a third of its workforce of over 300 employees owing to financial problems and low productivity at the company due to obsolete plants.

The company has shut down some plants in Harare.

The targeted employees have already been given dismissal notification letters. The last day for their employment is August 31, 2017.

Last year, Olivine retrenched about 30 workers, while the other 15, mainly managerial staff, were sent packing in December.

The restructuring has also seen several changes to the board of directors.
- fingaz
Tags: IDC,


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