E – Institutional shareholders in Rainbow Theatres have retained legal counsel or are using regulatory avenues to fight the proposed buy-out of the cinema giant by Supa Mandiwanzira.
The deal, fronted by Mandiwanzira but believed to be bankrolled by Reserve Bank governor Gideon Gono, has seen an outburst of hostility from several minority shareholders in Rainbow Theatres, who say the company is being “stolen” at a below value price and unfair terms.
While the actual amounts involved have been kept under wraps, inside sources said Mandiwanzira, who also owns Mighty Movies, had become the majority shareholder in Rainbow for Z$56 per share.
While he has staunchly refused to comment on the deal saying, “my business is a private affair,” the takeover of the country’s leading movie house has generated considerable interest locally and sparked speculation about the “hidden hand.”
A hearing will take place early next year at which all objections to the takeover will be presented and a panel will decide on the matter.
Rainbow Theatres MDC Jimmy Perreira declined to comment, saying the company would issue a statement soon.
Insiders expressed concern at the non-disclosure of the people involved in the deal amid reports that Gono was the “silent shareholder”. A few years ago, he reportedly gained a foothold in the media industry by buying into a leading financial weekly.
Post published in: News