Zimbabwe: Unifreight Seeks Shareholder Approval to Cede Stake in Two Subsidiaries

29 October 2020

LISTED transport logistics group, Unifreight Africa Limited is seeking shareholder approval to cede stake in two of its subsidiary companies in a transaction that will result in a shares swap with ZimPlow.

A circular to shareholders issued this week revealed that Unifreight Africa Limited's sub-subsidiary, Clan Services (Private) Limited intends to dispose of its 51% shareholding in Tredcor Zimbabwe.

This will result in the exchange for 18,399,564 newly issued ordinary shares in Zimplow Holdings Limited.

Unifreight also intends to surrender 100% of its shareholding in Birmingham Investments in exchange for newly issued ordinary shares in Zimplow and will receive an aggregate of 34.174.010 shares in ZimPlow.

"Pursuant to the Signed Acquisition Agreements dated 22 September 2020, the Board is requesting Shareholders to consider and, if deemed fit, approve the above," reads the circular in part.

Established in 1997, Tredcor trading as TrenTyre Zimbabwe is the exclusive distributor for the GoodYear brand of tyres in Zimbabwe.

The company is involved in tyre retreading, fleet tyre management, tyre filling services and distribution of various brands of new vehicle tyres.

For the year ended 31 December 2019, Tredcor posted a turnover of $81.68 Million, which was an increase from $53.6 Million in 2018 on an inflation adjusted basis.

Birmingham Investments is the 100% shareholder in Birmingham Property.

Birmingham Property is the owner of an immovable property known as 63/65 Birmingham Road, Southerton, and Harare. The property is currently vacant but was previously leased by a tenant for a monthly rental of US$10,350 or US$124,200 annually.

"This offer to Unifreight has been bundled with Zimplow's offers to Scanlink (Private) Limited's shareholders for their entire shareholding in Scanlink and Essential Proposition Properties (Private) Limited's property, commonly known as Stand 30001 Dagenham Road, Willowvale, Harare," said the circular.

The proposed Transaction will see Unifreight moving from holding shares in private companies to holding shares in a fairly liquid Zimbabwe Stock Exchange listed company.

Among other benefits the transaction will result in utilisation of the vacant Birmingham Property in a Value Adding Venture while presenting a sustainable solution to current occupation challenges by providing a taker with value adding projects.

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