Categories: Stories

Starafrica sells off transport unit for $1.5million

Sugar refiner starafricacorporation has sold off its subsidiary Bluestar Logistics for $1.5 million which will go towards repaying its debt to the PTA Bank but there are no takers for its 33 percent stake in Tongaat Hulett Botswana (THB), the company said today.

The group has been looking to sell Bluestar and the THB stake since 2013 after entering into a scheme of arrangement with its creditors when it failed to settle debts in excess of $20 million.

“We are pleased to advise that Bluestar Logistics was disposed to a local private company for $1.5 million with the effect from February 2016,” the company said in a notice to shareholders.

It said the purchase price comprised a deposit of $200 000, which was paid to the PTA Bank as repayment of a loan, with the balance being paid in equal installments over a period of 13 months, also to the bank.

“In terms of the loan agreement between PTA Bank and Star Africa the purchaser paid the deposit, and will pay the balance of the purchase price, directly to PTA bank as part settlement of the debt owed to PTA bank by Star Africa,” it added.

Efforts to dispose of the Tongaat Hullet Botswana stake were still going on.- The Source

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Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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