Old Mutual gets stake

Old Mutual is said to have acquired a 40% stake in Manica Board through a $6,4 million private placement, while a $4 million medium-term loan has been secured to recapitalise the business.

Before the transaction, PG Industries owned 60% in Manica Board through its wholly-owned subsidiary, Zimboard, while PG Bison, part of Steinhoff of South Africa, owned the remainder.

Now, PG Industries shareholding has been reduced to 28 percent while PG Bison will have 32% in Manica Board, a company involved in the production of wood products for the local and regional markets.

PG decided to be a minority shareholder in Manica Board to focus on businesses that have made money in the past. It indicated that Manica Board would not be consolidated into the 2011 accounts as the potential investors would dilute its shareholding. In the region, the company exports mainly to South Africa, Botswana, Mozambique, Democratic Republic of Congo, Zambia, Malawi, Namibia, Tanzania and Kenya.

Post published in: Business

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