Stalap assumes controlling stake in CFI Holdings

Newsday

STALAP Investments is now the largest shareholder in CFI Holdings Limited after increasing its stake in the company to over 40%.

BY TARISAI MANDIZHA

Stalap acquired 12,93% of the company’s shares on the Zimbabwe Stock Exchange (ZSE).

CFI Holdings engages in poultry, retail and specialised activities.

Stalap is an investment vehicle owned by Zimre Holdings. The 13 643 807 shares were disposed of by the National Social Security Authority (NSSA).

Previously, in the CFI shareholding structure, the largest shareholders were Stalap Investments 28,2%, NSSA 12,9% and EFE Nominees 7,2%.

According to the group’s statement yesterday: “The company would like to advise its shareholders and the investment public that it has received notice that its shareholder Stalap Investments (Private) Limited has acquired further shareholding in the company. This has taken the Stalap shareholding in the company to 41,3% .”

According to the statement, Section 9 note 1A of the ZSE listing rules triggers certain obligations by an investor who reaches a threshold of 35%.

“Accordingly the company has begun instituting measures to ensure compliance with the ZSE listing rules.

Shareholders are advised to exercise caution when trading in the company’s shares,” read the statement in part.

This comes after the group narrowed its loss for the period ended March 31 to $272 784 from $6 million in the same period in 2016 on the back of a good 2016/17 agriculture season and good performance by horticulture and property development projects.

In the period under review, revenue grew by 30,1% to $24,9 million compared to $19,1 million in 2016.

CFI Holdings group company secretary Panganayi Hare said the group consequently posted a breakeven performance in a profit before tax of $0,02 million compared to a loss before tax of 46,4 million incurred in the prior half year-end.

“Overall, the group registered a significant recovery during the half-year period on the back of a good 2016/17 agricultural season and good performance by horticulture and property development.

“The group took advantage of market opportunities in the retail sector, property development and horticulture and these sectors traded profitably during the period,” Hare said.

He said the group operated income before depreciation and financing cost (EBITDA) was $1, 45 million against a loss of $4,6 million incurred in the same prior period.

Financing costs for the period decreased to $0, 5 million from $0,7 million due to a decrease in borrowing levels and interest-bearing creditor debt.

The group capital expenditure during the period was $0,2 million from $0,1 million in 2016 whereas group borrowings decreased to $5,7 million from $7,9 million owed as at March 31, 2016.

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