Source: IDCZ appoints financial advisor for Chemplex transaction | The Herald June 22, 2018
THE Industrial Development Corporation of Zimbabwe Limited (IDCZ) has finalised the appointment of a financial advisor to handle the dilution of its shareholding in chemicals and fertilisers subsidiary, Chemplex Corporation Limited.
IDCZ general manager Ben Kumalo said the appointment of the financial advisor was through a public tender as per the new Public Procurement and Disposal of Public Assets Act (Chapter 22:23).
“The successful financial advisor was chosen based on their team composition, vast regional and international experience, and their innovative proposal which was looking more into the long term, beyond the dilution transaction” he said.
Kumalo said the financial advisor was expected to advise on the best way to restructure the Chemplex group, value the business and put together an information memorandum for potential investors.
The advisor is also expected to engage all the potential investors and request for bid proposals which would be evaluated to ensure the investor with the best value proposition is engaged, as well as negotiate for the best terms and conditions of the incoming shareholding.
“The IDCZ is seeking for an investor who is prepared to grow the fertiliser business using the locally available endowment that is the phosphate rock, bring in the required capital, technology upgrade and access to other foreign markets” said Kumalo.
IDCZ said it has handed over the expressions of interest it had been receiving since this process started in earnest at the beginning of this year.
Earlier in April, our sister paper Business Weekly reported that South African firm, Foskor was angling to acquire a significant but unspecified stake in the fertiliser producer.
Chemplex Corporation Limited is one of the five companies that are earmarked for restructuring by the IDCZ.
“The restructuring of the IDCZ portfolio will enable the Corporation to refocus and effectively deliver on its mandate of establishment and development of industries as provided in its enabling act and to also focus on its development finance role as already approved by Cabinet in its turnaround and restructuring plan,” added the general manager.
The IDCZ was incorporated through the Industrial Development Corporation Act (Chapter 14:10) in 1963 to invest in industry as a state agency.
Chemplex Corporation Limited is a wholly owned subsidiary of the IDCZ and has five main operating division: Dorowa Minerals, Zimbabwe Phosphate Industries (ZimPhos), Chemplex Marketing, Chemplex Animal and Public Health (CAPH) and G.D. Haulage.
It also owns G&W Industrial Minerals, 50 percent of Zimbabwe Fertiliser Company (ZFC) and 36 percent of Sable Chemicals.