The Industrial Development Corporation of Zimbabwe, (IDCZ) is set to scale down its ownership in exchange for funding in its two motor industry companies, Deven Engineering and Willowvale Motor Industries (WMI) as Government forges ahead with its plans to restructure Parastatals as a way of turning them around. This came to the fore this week when IDCZ issued requests for expression of interest notices for the dilution of its 100 percent stake in the two companies.
“The Industrial Development Corporation of Zimbabwe working in collaboration with the State Enterprises Restructuring Agency wishes to invite strategic partners to invest in Deven Engineering (and Willowvale Motor Industries) to dilute current shareholders (by) up to 74 percent,” read part of the notices.
Willowvale Motor Industries and Deven Engineering, which both started operations in 1961, are currently 100 percent owned by IDCZ, a wholly-owned Government entity.
The IDCZ indicated that it was inviting potential strategic equity partners to invest in the two companies. Interested would be investors are expected to provide information on their ownership, directors, existing interests or operations in related sectors, latest audited financial statements, markets operated in as well as proof or demonstration of capacity to provide financial backing for the potential transaction.
“Willowvale Motor Industries is involved in sales of completely built up vehicles (currently Mazda and Mahindra brands) and is contract-assembling BAIC pickup trucks from semi-knocked down kits. It has installed capacity for production of light to heavy–duty trucks, buses and agricultural tractors,” read part of the notice on the car assembly company.
“Deven Engineering’s core competence is truck and bus body manufacturing done on a rolling chassis or from semi-knocked down kits. It can also manufacture various road trailers, tankers and specialised vehicle bodies such as compactors, dumpers, tippers, refuse trucks and carry out repair work. The company is currently a dealer for (Chinese) Yutong buses,” said the IDCZ with respect to its coach building company.
Last year Government announced its plans to restructure its parastatals in a move which will see some companies such as Agribank and IDCZ subsidiaries being privatised while others such as Kingstons Limited and Zimglass are set to be liquidated. Government will also merge some of its companies such as Powertel and Africom as well as listing others such as Complex Corporation and Petrotrade.
It has already unbundled the Gain Marketing Board (GMB) effective 1 April this year to separate the statutory functions of the parastatal from its commercial arm, Silo Foods. Parastatals such as New Ziana, the National Liquor Licensing Board, the Lotteries and Gaming Board are set to be absorbed by their parent Ministries.