GOVERNMENT has seized control of Zimre Holdings Limited (ZHL) in a transaction that saw it buying out Day River Corporation, an entity owned by the Rudland brothers, businessdigest has learnt.
The deal will also see seasoned banker Nicholas Vingirai being appointed to the ZHL board.
The Rudlands have been active investors on the Zimbabwe Stock Exchange, holding stakes in a number of companies.
In 2015, the Rudlands took over ZHL in a rights issue, a move which saw the government’s shareholding being significantly reduced after it failed to follow its rights.
According to results then, only 18,03 % of shareholders followed their rights.
The Rudlands owned 33,3% in ZHL through Day River Corporation.
Sources say through the transaction, government becomes the major shareholder in Day River Corporation.
"Government has taken over control of Zimre Holdings after buying the stake held by the Rudlands brothers. Vingirai is going to be appointed to the Zimre board and the government is now the owner of Day River,” the source said.
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“It essentially means the shareholders of Day River Corporation were the ones who changed."
Businessdigest could not determine the value of the transaction. A look at the company's share register shows that Day River Corporation held 33,81% of Zimre’s shareholding, while the government of Zimbabwe owns 27,38% of the shares.
But according to the source, this means the government is now the major shareholder.
Zimre CEO Stanley Kudenga said: "These are transactions at shareholder level but what we know from where we stand is that Day River remains an investment vehicle in ZHL. What has happened at Day River is a subject between government and Day River. We are not privy to it”.
Harmish Rudland said; "Day River remains a shareholder. I have been on board for 10 years and cannot add additional value, so will be focusing on other businesses going forward".
The National Social Security Authority-National Pension Scheme holds 15,24%, with the rest of the shares held by minorities.
In a notice to its shareholders to convene an annual general meeting (AGM) at the end of last month, the group announced the retirement of Hamish Rudland, who has been sitting on the board since 2015.
"To note the retirement of Mr. Hamish BW Rudland, who retires in terms of Article 77 of the Company’s Articles of Association and is not seeking re-election to the board.
“Mr. Rudland has served on the company board since his appointment in June of 2015. He was chairman of the finance and investments committee and member of the human resources and nominations committee.
“The board of directors hereby expresses its gratitude to Mr Rudland for his service on the board of directors, for giving of his invaluable acumen in business and for being part of a transformational stewardship role to the ZHL Group through his membership of the Board of Directors of ZHL over the years," ZHL said.
In the AGM notice, the company said it would also seek to elect Nicholas Vingirai on the board of directors.
"To elect Mr. Nicholas Mugwagwa Vingirai in terms of Article 80 of the company’s Articles of Association as a new non-executive director on the board of ZHL, consistent with the company’s thrust towards continual renewal of its governance and stewardship of the group business operations," ZHL said.
