NSSA in talks to sell Turnall shares
Turnall Limited, says one of the major shareholders in the roofing and building materials supplier, National Social Security Authority (NSSA), is still engaged in discussions for a transaction to dispose of its interest in the listed company.
The State pensions authority is the largest shareholder in Turnall with a 32,5 percent stake in the Zimbabwe Stock Exchange (ZSE) listed construction materials products producer.
Turnall said the transaction, if successful will have material impact on the group’s shares and shareholders must continue to exercise caution when dealing in the firm’s shares.
NSSA recently said the proceeds from the disposal of shares would be allocated to impact investments and offshore investments, NSSA general manager Mr Arthur Manase said.
The strategic refocus comes after NSSA disposed of its shareholding in First Capital Bank and ZB Financial Holdings.
NSSA is also implementing the third phase of its insurance sector consolidation, which would see it offloading up to 31,22 percent in First Mutual Holdings.
Meanwhile, Turnall said that following the easing of Covid -19 restrictions in the third quarter of last year, the group experienced increased demand for its products.
The Government relaxed some of the Covid-19 restrictions during the third quarter of 2020. This helped stimulate local demand for goods and services in the period.
The group’s sales volumes for the quarter were 11 percent above comparable period last year and 81 percent above the previous Covid-19 impacted quarter.
Cumulative sales volumes for the nine months were 3 percent above the comparable period last year.
The group’s exports were 3 percent of sales volumes for the period with exports negatively affected by the Covid-19 pandemic and resultant transit restrictions.
Production volumes for the period were 31 percent above the comparable period last year.
Cumulative production volumes were 3 percent below the volumes for the comparable period previous year.
In the outlook, Turnall said the higher seasonal demand is expected to continue in the fourth quarter as customers roof their properties before the onset of the rains.
The relaxation of restrictions and opening of borders in December 2020 is expected to provide an improvement in the movement of both people and cargo.
The group said it will continue to abide by the Covid-19 guidelines and regulations and ensure the safety of stakeholders that interact with the business.
However, there is significant uncertainty on the duration and expected impact of the Covid-19 pandemic on the business and the economy.
Turnall produces and markets materials for the building and construction industry in Zimbabwe.
The company operates in a number of segments; building products which includes ceiling boards and roofing sheets, partitioning and fascia boards, flat sheets.
Additionally, Turnall also deals in ceiling moulds, piping products which includes water and sewer reticulation pipes and concrete products, which includes roof tiles.
The company also produces a line extension range that includes Turnallware flowerpots and garden décor product, Nutech non-asbestos sheets and Spanish pavers.
The fibre cement division targets the low-income housing sector, local authorities and municipalities through two divisions.–herald.cl.zw
