Bakhresa Group enters Zimbabwe

[Geza Ulole]

"Cabinet has approved the deal and the judicial manager is now working on taking it out of the judicial management,".
​

GOVERNMENT has approved the planned acquisition of troubled milling and food processing firm, Blue Ribbon Industries (BRI) by Bakhresa Group of Tanzania, the Financial Gazette's Companies & Markets (C&M) can reveal.

Bakhresa, the largest miller in Tanzania with operations in east and southern Africa, will inject about US$40 million for the acquisition of a 75 percent stake in BRI and its subsidiaries.

The successful equity injection into BRI would bring relief to hundreds of workers who have suffered for the past four years.

Speaking to C&M on the sidelines of the Zimbabwe National Chamber of Commerce Congress held in the resort town of Victoria Falls last week, Industry and Commerce Minister, Mike Bimha, said the former milling giant would be out of judicial management soon.

"Cabinet has approved the deal and the judicial manager is now working on taking it out of the judicial management," said Bimha.

The Tanzanian firm's takeover bid had faced resistance from competitors, who were against foreign ownership of the business.

Once one of the country's largest millers, BRI has five units namely BRI Logistics, Blue Ribbon Foods, JA Mitchels and Nutresco Foods.

The units have very strong brands, which could easily compete on the local and foreign markets after the business is re-capitalised.

BRI, well known for its popular maize meal brands, Chibataura and Ngwerewere, also has considerable infrastructure, which puts it in a good position to recapture a significant market share.

This, sources told C&M, worried current players in the milling industry, who were said to be using smaller, indigenous players to lobby against the planned transaction.

The Grain Millers Association of Zimbabwe (GMAZ) openly opposed the takeover of BRI by Bakhresa, saying it was contrary to the Indigenisation and Economic Empowerment Act, which compels all foreign-owned firms to cede at least 51 percent of their shareholding to locals.

Foreigners buying into local firms are also proscribed from having a stake beyond the stipulated threshold.

Bakhresa is understood to have sought exemption from indigenisation requirements for at least 10 years from the date of acquisition.

BRI, currently under judicial management, resumed operations mid last year after it was forced to close shop in 2012 due to funding constraints which were worsened by debt, some of which was from regional financiers, PTA Bank, which extended a loan in 2010 for working capital.



nomasana, MK254, sam999, NairobiWalker, hbuyosh, msemakweli, simplemind, Kimweri, Bulldog, MK254, Kafrican, bagamoyo,Ngongo, AbTitchaz, mtanganyika mpya, JokaKuu, Ngongo, Askari Kanzu, Dhuks, Yule-Msee, waltham, Mpendwa1, kadoda11,DemiGod, Smatta, mojawapo

Govt approves Blue Ribbons takeover | The Financial Gazette – Zimbabwe News

 

[DIUNATION]

Mpemba anaendelea ku take over.

 

[tansoma]

Maashaaallah!!!!!!
mwenyezi Mungu amzidishie na aendelee kufanikiwaa kuishikaa zimbabwe

 

[Ndahani]

Hongera sana Bakheresa!

 

[Ozzie]

Hongera kwa kulitangaza vyema jina la Tanzania.

 

[kadoda11]

hivi kuna mwana East Africa aliyewekeza zaidi kibiashara ndani ya jumuiya na nje ya jumuiya kama said bakhresa?.

 

[simplemind]

Mpemba anaendelea ku take over.

Illustrious son of Zanzibar hongera.

 

[Nas Mapesa]

Mashallah

 

[Geza Ulole]

hivi kuna mwana East Africa aliyewekeza zaidi kibiashara ndani ya jumuiya na nje ya jumuiya kama said bakhresa?.

METL nae amewekeza vizuri kwenye textile nje wako mpaka Ethiopia! MMI Steel kwenye steel production na Sumaria group kwenye plastic

 

[BansenBurner]

Safi sana nafurah kuona makampuni ya Tanzania yanawekeza mpaka nje. Nadhani na Tanzania inanufaika pia

 

[Geza Ulole]

​

Manufacturing and trading firm Mohammed Enterprises Tanzania Ltd, one of the country's biggest private employers, said on Friday it would invest $250 million to expand its business in Africa to capitalise on a growing middle class demand.

Chief Executive Officer Mohammed Dewji also told Reuters he was upbeat about prospects in Tanzania, whose economy has been growing at about 7 percent a year and which he said could accelerate to 10 percent as natural gas finds were exploited.

We want to expand our presence in countries such as Zambia, Mozambique, Rwanda, Burundi, Madagascar and Ethiopia​

Despite the global financial crisis, African economies have recorded some of the fastest growth rates outside Asia, creating a bigger middle class and drawing local and foreign investment.

"Our vision is that by 2020/21, we want to be a $5 billion revenue company," said the CEO of the firm also known as METL Group.Revenue was expected to reach $1.9 billion in 2014/15. Regarding plans to invest $250 million over two years, Dewji said: "Half of this ... will be our equity and the other half will be raised through banks."

Tanzania's capital market authorities have been trying to encourage family-owned firms like METL Group to list, saying it would offer cheaper financing. But many such firms are reluctant to cede control to outside shareholders.

"I don't see us listing on the stock exchange in the near future," said Dewji. "We are still building the company."

The company operates in 11 African nations, mostly in east Africa, including Kenya and Uganda, as well central and southern states such as the Democratic Republic of Congo and Mozambique.

"We want to expand our presence in countries such as Zambia, Mozambique, Rwanda, Burundi, Madagascar and Ethiopia," he said, adding the focus for investment would be in manufacturing, particularly cotton, without giving further details.

The group already has cotton mills in Mozambique and Zambia. Established in the 1970s, the firm has more than 30 factories making consumer products ranging from bicycles and detergents to edible oil and beverages.

Other investments cover the agriculture, infrastructure, energy and mobile phone sectors. Dewji said a growing middle class was driving demand.

"Over the last decade, Tanzania for example has recorded an annual formal growth of 7 percent. I think, informally, we are growing at a much faster pace," he said, a reference to the large number of unregistered businesses and informal workers.

He said large offshore gas finds could lift growth further. METL employs 24,000 mostly in Tanzania. Dewji said he expected this to rise to more than 100,000 in five years.

Source: Tanzania: METL Group eyes Africa expansion as middle class grows | East & Horn Africa

 

[white-frank mhiro]

goo...!!! and all the best...!!!
naomba kina davis mushi waache matanuzi waexpand na uyu wa precision air aache ubahili fastjet watam.......!!!

 

[Pohamba]

Yale majitu ya Chimwaga yatakwambia ni Matokeo ya Big result now, nakumbuka Mafanikio ya shule ya Tusiime akina Kawambwa yalisema ni BRN

 

[Bantugbro]

Safi sana Bakhresa, sasa awapelekee na vingamuzi vya Azam TV pia, akimaliza hapo kwa Bob kazi ya kuingia kwa Madiba land itakua rahizi zaidi....:teeth:

Majirani wetu waKaskazi vipi...Nomasana upo?:A S-rap:

 

[bakari bakari 1]

Bg up boss wa tz

 

[Bavaria]

The acquisition will open up more potentials to the other Firms from tanzania.

 

[Geza Ulole]

Safi sana Bakhresa, sasa awapelekee na vingamuzi vya Azam TV pia, akimaliza hapo kwa Bob kazi ya kuingia kwa Madiba land itakua rahizi zaidi....:teeth:

Majirani wetu waKaskazi vipi...Nomasana upo?:A S-rap:

nomasana na MK254 wanapiga njuru na investment ya Faida ya US$ 6 mln!

[h=1]Flour mill project, South Africa[/h]PUBLISHED 30 MAY 14 BY: SHEILA BARRADAS - CREAMER MEDIA RESEARCH COORDINATOR & SENIOR DEPUTY EDITOR

Name and Location
Flour mill project, KwaZulu-Natal, South Africa.

Client
Bakhresa SA.

Project Description
The project involves the upgrade of the old Union Flour Mill facility, in Durban, to a facility with a milling capacity of 750 t/d, primarily servicing the local market.

Value
The project is estimated at $80-million.

Duration
The project is expected to be completed by mid-2015.

Latest Developments
The mill process design and consequential refurbishment/regeneration design are currently under way.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Bakhresa SA, Veeresh Hiremath, tel +27 31 274 2000 or fax +27 31 274 2004.