HARARE – OK Zimbabwe Limited, the country’s largest listed retail supermarket group, is facing mounting pressure to dispose of several key properties in order to service loans amounting to US$24 million, but progress has been slower than expected, delaying the company’s wider turnaround strategy. As part of its recapitalisation plan, the supermarket group targeted US$30.5 million to restock and settle debts. Shareholders injected US$20 million, while the remaining US$10.5 million was expected to come from property disposals.
The company has, however, indicated that selling the assets has “taken longer than expected”. “The rights offer was successful and raised the full amount of US$20 million. However, the property sales have taken longer than expected to materialise, and as a result, the US$10.5 million funding has not yet been realised.
“Sale and purchase agreements on two of the properties are about to be signed, while offers on other three are being reviewed. Efforts to dispose of the other properties and improve liquidity continue,” Margaret Munyuru, the company secretary stated. OK disclosed that two assets were close to being sold, with three more attracting firm interest.
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