Connect with us

Support The NewsHawks


Turnall majority shareholders to buy out minorities



TURNALL Holdings’ new majority shareholders are planning to buy out minority shareholders after acquiring the control block of the entity amid plans to inject fresh capital into the business to improve operational efficiencies.


Turnall’s business fortunes took a turn when Shabanie-Mashaba Mines collapsed during the aughts. The mine was critical for its chrysotile fibre throughput used in manufacturing building materials. Since then, Turnall has been largely relying on imports from Brazil and Russia.

In June this year,  ZimBrands concluded the purchase of 32.55% of Turnall and later on in July, a further 10% at ZW$4.57 per share was acquired, bringing the total shareholding to 42.55%.

Under Zimbabwe Stock Exchange listing requirements, a single shareholder with at least 35% shareholding must make a mandatory offer to minorities. If the offer is accepted and the public ends up having less than 30% of the listed company, the entity will have to delist.

The NewsHawks understands that the offer will however likely to have few takers after ZimBrands offered minorities ZW$4.57 per share, the same amount it bought the stocks a few months back. Given Zimbabwe’s inflationary environment, investors may not budge.

Official figures show that Zimbabwe’s year-on-year inflation for July rose to 256.9% from 191.7% in June as the economy continues to face headwinds.

ZimBrands’ primary business is the importation of critical raw materials for supply to local processors.

“ZimBrands decision to acquire a control block in Turnall was driven by the need to operationally diversify its operations and unlock the potential in Turnall as an established brand in Zimbabwe’s construction and building materials industry,” reads a notice to shareholders.

“ZimBrands intends to recapitalise the business in order to take advantage of the growing number of infrastructural projects in Zimbabwe and the region as well as upgrading its operations to global standards. This includes reconfiguring its operations to meet the growing demand for new products such as lighter roofing material.”  

ZimBrands and Mega Market (Pvt) Limited have a common shareholder owning 49% of ZimBrands and 100% of Mega Market. Mega Market is a fast-moving consumer goods distribution company based in Mutare.

 Mega Market which currently has 17.04% shareholding in Turnall,  bought  a 10% stake of Turnall in November 2020 at a price of ZW$0.57 per share.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *