Masawara Share Discussion Threads

[plunge] 19/2/2012 19:59

Indigenisation: Masawara given 14-day ultimatum



Friday, 17 February 2012 11:08

Chris Muronzi/ Gamma Mudarikiri

THE Youth Development, Indigenisation and Economic Empowerment ministry has
given Masawara plc a 14-day ultimatum to demonstrate that it complied with
indigenisation requirements that were pre-conditional to its acquisition of
BP & Shell Marketing Services (BPSMS) Zimbabwe.
Masawara is said to have misrepresented its shareholder composition, amid
indications that 74% of the shares could be held by off-shore non-indigenous
shareholders.

Permanent Secretary in the ministry, George Magosvongwe, told the Zimbabwe
Independent that government wanted to know whether any conditions were
breached before taking action.

Among some of the conditions were that the company that would acquire BPSMS
would be an indigenous company, honour agreements with dealers, dispose of
some of the service stations to indigenous Zimbabweans, come up with an
employee share-option scheme and stick to the same conditions of employment
of staff post the acquisition, Magosvongwe said.

He denied reports his ministry would cancel the deal.

He said: "Our primary concern is to see whether the conditions have been
fulfilled. We met them (Masawara) last week and they reaffirmed their
commitment to the conditions. They could be lagging behind in terms of
implementation of some of the conditions but we believe they are on course
to implement the conditions."

Magosvongwe said it was up to the minister (Saviour Kasukuwere) to give
Masawara a chance to respond to the allegations and then make a decision.
"The minister has requested FMI (Masawara's operating company) to respond to
the questions," he said.

"Until we get a response, we cannot take any action. We want to retain the
stability and integrity of the economy. Our intention is not to destroy the
companies that we are dealing with and other companies but to expand the
economy and have a strong national economy."

Kasukuwere was not available for comment at the time of going to print as
his phone was not reachable.

The National Indigenisation and Economic Empowerment Board has recommended
the cancellation of the acquisition deal but Magosvongwe said the company
had to respond to the board's findings and recommendations first. The
initial proposed structure at the time of the acquisition provided for three
entities, Masawara plc, Masawara Mauritius Ltd (MML) and FMI Zimbabwe.

FMI Zimbabwe is wholly-owned by MML, while in turn MML is wholly owned by
Masawara plc. Shareholders in Masawara plc are institutional and private
investors, primarily based in the United Kingdom. The only single
shareholder is Invesco plc which holds approximately 29,5% of Masawara.

According to the National Indigenisation and Economic Empowerment Board
(NIEEB) the indigenous partner, Shingi Mutasa, through his FMI Zimbabwe
(Pvt) Ltd in the Masawara group has possibly far less than 26%, with the
balance being held by non-indigenous off-shore groups.

The NIEEB feels the transaction was approved through misrepresentation and
fraudulent non-disclosure of information, an offence in terms of the
regulations.

Masawara is also behind schedule in terms of implementing an employee
share-ownership scheme that would see workers getting 10% of the company's
equity.

[tenapen] 17/5/2011 20:34

Taking a look at other Zimbabwe focused companys.



WITH a street-smart name like Masawara, Shona street lingo for "wise guys",

Cont...

Now more and more fund managers are following in the footsteps of LonZim and doing a better a job of it, too.

END
---

I hold Lonzim.

[down_under] 22/8/2010 00:46

I will buy this only when it drops below 50p placing price.

[darkinbad] 20/8/2010 16:18

The Telegraph, 19 August

Beware following in Woodford's footsteps
By Richard Fletcher

"The ability of Cenkos to persuade Neil Woodford, Invesco Perpetual's star fund manager, to take significant stakes in a string of its Aim floats has long intrigued many in the City. ....."

[darkinbad] 20/8/2010 15:49

Thanks for the link WS, I'll take a look.

[wstirrup] 20/8/2010 15:36

Hope you're not talkin' to yourself there Darkin...

:¬))

Anyway, if you are already in these, perhaps you'd like to check out my thread over - Little known Zimbabwean Miner with a Gold mine, Nickel Mine (or three) smelter, and Refinery.

Just needs a little cash to bump-start things, but WAAaaayyy under valued in this author's opinion... (and that of many others too)

I almost considered setting up a MASA thread, some days ago when someone on my board gave it a mention, and I did a bit of digging. I've been watching LGO too which has a diversified asset base and several businesses in that part of the world, it'd be interesting to swap notes... You'd be welcome over on the MWA thread too...

Cheers. W.

[darkinbad] 20/8/2010 15:33

There's no shortage of news articles on this one.

I'm not 100% certain how new listings work but I guess there are a number of shares being made available by FMI Holdings or EWDM Trust for purchase in the market.

[darkinbad] 20/8/2010 15:21

The Economy News, 02 August

Defending Woodford's Zimbabwean investment
Written by Editorial - Will Peters

"It is lazy journalism to describe the Zimbabwean economy of 2010 as being one that is in scandalous decline. ......."

[darkinbad] 20/8/2010 15:17

Moneyweek, 20 August

Is Zimbabwe the next emerging market dynamo?
By Associate Editor David Stevenson

[darkinbad] 20/8/2010 14:53

The Zimbabwe Independent, 05 August

Move over LonZim, enter Masawara

"WITH a street-smart name like Masawara, Shona street lingo for "wise guys", this company sees itself as destined to make smart business decisions. The new fund, like the Zimbabwean (Sawara) has a penchant for creating value in hopeless situations. ......"

[darkinbad] 20/8/2010 14:47

ThisisMoney, 04 Aug

Where Robert Mugabe meets Invesco Perpetual

[darkinbad] 20/8/2010 14:40

Evening Standard, 20 Aug
Invesco's Bizzare Zimbabwe Punt

"Just about the most influential fund manager in Britain is Neil Woodford, the Invesco supremo who oversees Britain's largest investment funds.

But has he lost the plot with his decision to take a punt on Zimbabwe? ....."

[darkinbad] 20/8/2010 14:34

Article from Citywire (02 Aug) on Woodford's stake

[darkinbad] 20/8/2010 14:30

This one looks interesting - who's brave enough to invest in a Zimbabwean recovery? Neil Woodford at Invesco Perpetual was willing to dip his toes in with GBP15M at 50p of his 15Bn under investment to take a 29.9% stake.

[darkinbad] 20/8/2010 14:23

Investments
40% stake in Joina City - Largest Commercial and Retail Development in Harare

Intial 30% stake in TA Holdings Ltd (ZSE:TA) - Investment Holding Company
Increased to 33.88% then again to 35.09% in 2011


18 January 2011 - 50% stake in Telerix Communications for $5M consideration

25 March 2011 - 100% stake in BP Zimbabwe and Shell Zimbabwe (subsequently renamed Zuva Petroleum) for $30M consideration including $21.8M third party structured finance. Effective 51% economic stake because of other structured funding arrangements in JV as Masawara Energy (Mauritius) Limited

Additional Fundraising

9 May 2011 $23.5 M (GBP 14.5M) at 97c/share (60p/share) taking Invesco stake to 42%

Listing Details


Shareholders
FMI Holdings - 63M shares (51%, was 63.4% at listing)
EWDM Trust- 3.7M shares (3.0%, was 3.7% at listing)
Invesco - 52.1M shares (42.1%, was 29.9% at listing) Took GBP 15M stake in IPO plus 14.5M in May 2011 placing

Presentations
May 2011 - Imara