Group chief executive officer Samsom Gate last week told The Zimbabwean that initial responses so far were positive.
We have engaged three institutions to access funds for our refurbishments and the negotiations are promising. For company reasons I cannot divulge the names of the banks, he said, adding that the liberalisation policy in the country had enabled them to access lines of credit.
The listed firm, he added, had two major projects in Chimanimani and Nyanga that need to be completed this year.
Nyanga is particularly critical for us because of the vast opportunities at the border town, he said. Nyanga partly borders Mozambique and Zimbabwe.
Gate said they would expand Silk Plant, one of the leading processing plants in the eastern highlands. This should be followed by properties under construction in Mutare, he said. Another property, Courtney Mill, is under construction in Chimanimani.
He added that the group aimed to expand its processing plants by 50 percent by 2020 across Zimbabwe.
According to research done by Abed Capital, Zimbabwe Timber Merchants shares stand at US$0.54 per share, which translates into a market capitalisation of US$389 million.
With this our processing plants will be able to achieve a market capitalisation of US$1 billion, Gate said.
Besides the refurbishments and new constructions, we are also pursuing mergers and acquisitions across the continent to increase our market share, he added.
Gate said mergers and acquisitions would boost its planned dual listing in three years time.
He was of the opinion that relative political stability in Zimbabwe has stimulated economic activity, setting the tone for infrastructure developments in the country. He said, We had to restart business last year in Zimbabwe, adjusting to the use of foreign currency and we have seen positive signs for success.
Post published in: News