Zimplow diversifies into transport and logistics
ZIMPLOW shareholders have approved the company’s plans to diversify into the transport and logistics industry as it seeks to expand business.
The firm is listed on the Zimbabwe Stock Exchange and manufactures and distributes agricultural, mining and construction equipment. Under the planned diversification initiative, Zimplow is set to acquire the entire shareholding of the sole distributor of Scania products in Zimbabwe, Scanlink (Private) Limited, the exclusive distributor of the Goodyear brand of tyres in the country, Tredcor Zimbabwe (Trentyre) as well as an industrial stand in the Southerton area in Harare.
Scanlink, and Tredcor Zimbabwe are said to be industry leaders in their respective product categories in Zimbabwe.
In a notice, Zimplow said all the resolutions tabled at the Extraordinary General Meeting concerning the acquisition of the entire issued share capital of Scanlink (Private) Limited, the acquisition of the entire issued share capital of Tredcor Zimbabwe (Private) Limited, the acquisition of the entire issued share capital of Birmingham Investments (Private) Limited and the acquisition of Stand 30001 Dagenham Road, Willowvale Township, Harare, were passed by the requisite majority of votes of shareholders present in person or represented by proxy.
The acquisitions are in exchange for an issuance of Zimplow ordinary shares listed on the Zimbabwe Stock Exchange.
Scania has a premium quality brand with a nationwide market presence in trucks, buses, and generators while Trentyre is the fifth largest tyre supplier in Zimbabwe by volume with a brand selection that embraces premium, value and budget tyre brands targeting customers at various price points.
It is also hoped that the acquisitions will provide Zimplow with increased product diversity and market share in the transport and logistics industry. While over the years, Zimplow has constructed a portfolio of complementary businesses and brands focused on manufacturing and distributing farming, mining and construction industry implements, the acquisition of Scanlink will see the enlarged company diversify into distributing large vehicles, long range buses, coaches and generators with the main customers being in the mining industry.
Also, the acquisition of Tredcor Zimbabwe will see Zimplow venture into the distribution of Goodyear tyres and the retreading of a variety of brands.
The above businesses are complementary to the existing Zimplow portfolio and entrench the company’s market position in the mining and construction industries.
The consolidation of Zimplow, Scanlink, Tredcor Zimbabwe and Birmingham Investments as well as the addition of Stand 30001 Dagenham Road, Willowvale Township, is also expected to create a robust balance sheet through the addition of property assets. It is hoped that the above acquisition would go a long way in strengthening Zimplow’s balance sheet and thus raise the firm’s ability to attract capital and pursue growth opportunities organically and through strategic acquisitions. –chronicle.co.zw
