The Sunday News
Munyaradzi Musiiwa Business Correspondent
A LOCAL private equity, Takura Capital is set to inject $30 million into struggling manufacturing firm Cairns Holdings after snapping a controlling 63 percent stake which was previously held by the central bank. In July shareholders and creditors of the struggling manufacturing firm, Cairns Holdings, voted in favour of its take-over by Takura Capital. In an interview on the sidelines of the Confederation of Zimbabwe Industries annual congress in Gweru, Cairns Holdings judicial manager Mr Reggie Saruchera of Grant Thornton confirmed that the company was on the path to recovery following the latest deal.
He said the deal, which would see the company scaling up production, was likely to be concluded by next month.
“We have already identified an investor for Cairns and that investor is Takura Capital which should be investing over $30 million in the business. We have met as creditors and members of Cairns and they have all agreed that we should proceed to invite the investor to put in the money.
“End of September the investor is coming to take over the business and recapitalise and replace items of plant and equipment and thereafter Cairns will be back and operating like a viable entity like the giant it was yesterday,” he said.
Cairns Holdings hopes for revival were once rekindled by South African Investor, Vasari Group, but the hope was turned into gloom when the firm failed to avail the funds required for the revival of the giant food and beverage processor.
The company had seen its operations plummet since 2009 when Government adopted the multicurrency system.
However, the giant manufacturing company is slowly awakening following the acquisition of new plant and machinery.
It slightly increased its capacity utilisation a few years ago after accessing funding through the Distressed Industries and Marginalised Areas Fund.
Cairns, whose debts amount to $25 million, was placed under provisional judicial management in 2012 and final judicial management in February 2013 due to insolvency. It voluntarily delisted from the Zimbabwe Stock Exchange during the same year.
