Willdale proposes to sell 190 ha. to raise $4.75 million

Brickmaker Willdale Limited is seeking shareholder approval to dispose of 190.1 hectares of its land that is currently not suitable for mining clay used in brick manufacturing, for $4.75 million which will be used to settle part of the company’s debt obligations.

The company has debt obligations amounting to $6.8 million.

“The board is proposing to dispose of the 190.1 hectares of idle land that it currently owns forming part of Swanwick of Teneriffe of Kinvarra,” the company said in a circular to shareholders.

Shareholders will vote on the proposed transaction at an extraordinary general meeting on May 26..

“Whilst negotiations with potential buyers are still in progress, the directors are proposing a minimum selling price of $2.50 per square meter which gives total gross consideration of at least $4 750 000”, the company said.

The proposed move by government to relocate the capital city and Parliament to Mount Hampden on the outskirts of Harare had ignited demand for residential stands in the area, presenting the company with an opportunity to dispose of the land, it said.

In 2014, the company raised $3.2 million through a rights offer in a bid to replace and refurbish plant and machinery, resulting in production capacity increasing by 67 percent to 10 million bricks per month from 6 million previously.

Top shareholders of the company include Dahaw Trading (Pvt), Ranus Investments (Pvt) and Old Mutual Life which hold 39.55 percent, 22.64 percent and 15.36 percent respectively.- The Source

(71 VIEWS)