HARARE, July 14, (The Source) – Hardware retailer PG Industries says it has found an investor to buy the entire company’s share register at a cost of $500,000.
Shareholders are expected to approve the deal at a scheme meeting on the 5th of August.
The company has been under a High Court sanctioned scheme of arrangement since last April designed to protect its assets while it restructures its debts. The purchase by Dewei sets aside the scheme, subject to sanction by the High Court.
“The Members shall specifically approve; the sale by members, to Dewei Investments Limited of their entire 8,640,860,097 (eight billion six hundred and forty million eight hundred and sixty thousand and ninety-seven) shares in PG for a consideration of US$500 000 or 0.0058 cents per share,” the company said on Thursday in a statement.
Members are also expected to approve the Secured Lenders’ Scheme, Preferred Creditors’ Scheme, and The Concurrent Creditors’ Scheme at the scheme meeting.
PGI’s shares were suspended from trading on the local bourse in 2013 with analysts asserting that the company was technically insolvent.
As of June last year, PGI had paid secured creditors $4,3 million through property sales and debt swaps, while the balance of $965,082 was restructured to a three-year, 12 percent per annum long-term facility.
PGI is heavily undercapitalised and needs massive cash injection to revive operations, a task which now befalls the new investor.
Public information on Dewei Investments Limited, the new investor is not readily available.