Harare — SWISS bank UBS AG failed to acquire the exact stake it had targeted in London Stock Exchange listed Zimbabwe-focused conglomerate, LonZim.

The European bank had recently indicated that it was interested in acquiring about 3 percent of LonZim's 36 331 525 issued ordinary shares.

UBS AG would not say how much of LonZim's share capital it has acquired, but said the stake held fell below the targeted 3 percent on December 10.

"As a result of the recent placing of shares by the company, UBS AG informed the company on December 11 2009 that, as at close of business on December 10 2009, UBS AG's holding in the company's total issued share capital of 36 331 525 ordinary shares had gone below the notifiable 3 percent threshold," said LonZim in a statement early this week.

UBS AG is a leading financial services company headquartered in Zurich and Basel, Switzerland.

The interest shown by one of the world's leading financial institutions reflects the growing confidence in the local economy since formation of the inclusive Government and progress made towards economic stability in the country.

LonZim is one of only a few foreign conglomerates that have publicly expressed confidence in the recovery of the local economy and kept investing in Zimbabwe.

The London Stock Exchange-listed firm recently noted that the drastic reduction in inflation to negative levels was evidence the economy was on a mend.

It also further noted that the fact that the international community subscribed to the idea of debt relief and financial assistance to Zimbabwe was sure to guarantee recovery.

While LonZim has investments in East and Southern Africa-outside Zimbabwe, the majority of its operations are concentrated in this country.

Among many of its investments LonZim owns the exquisite Leopard Rock Hotel in Vumba, electronic switch transfer service and payroll solutions provider Paynet, pharmaceutical concern Panafmed and telecomms firm Celsys.

LonZim also owns chemical manufactuer Millpal and soon to come Fly540 Zimbabwe among others.

Regionally, LonZim owns beach front located Aldemento Turistico de Macuti Hotel in Mozambique, the Fly540 East Africa franchise and recently indicated it invested in an option to acquire mobile software provider, FMNA Africa.

The conglomerate said, locally, it is reviewing potential investment opportunities including acquisition and development of a five-star hotel property located in a prime area in Harare.

The company is also mulling purchasing a large industrial warehousing complex in Harare and development of an agriculture processing facility among other initiatives.