OK Zimbabwe plans major changes to fix money problems and restore trust among investors. The retail company will raise 30.5 million dollars through stock sales and property deals. Willard Zireva will lead the board as executive chairman after Herbert Nkala leaves his position. Several other board members will also step down at the next shareholder meeting. Company leaders hope these moves will help the business recover from serious financial troubles.
Zireva returned as temporary chief executive officer during April when the company faced a crisis. The board brought back experienced managers to replace leaders who left voluntarily earlier this year. These veteran executives will stay until the end of the current financial year. New permanent managers will take over after that to carry out fresh business plans. The company says this leadership team has the skills needed for the difficult transition ahead.
Shareholders can buy new stock at a discount price starting July 21. The company will issue 1.83 billion new shares at about one cent each. Current owners can purchase 1.37 new shares for every share they already hold. Major investors have already promised to buy 23.74 million dollars worth of the new stock. The company will also sell buildings worth 10.5 million dollars to raise additional cash.
OK Zimbabwe owes more than 30 million dollars to suppliers and other creditors. Poor management and tough market conditions created these financial problems. Company officials believe the new money and leadership changes will help the retailer become profitable again.
Zireva returned as temporary chief executive officer during April when the company faced a crisis. The board brought back experienced managers to replace leaders who left voluntarily earlier this year. These veteran executives will stay until the end of the current financial year. New permanent managers will take over after that to carry out fresh business plans. The company says this leadership team has the skills needed for the difficult transition ahead.
Shareholders can buy new stock at a discount price starting July 21. The company will issue 1.83 billion new shares at about one cent each. Current owners can purchase 1.37 new shares for every share they already hold. Major investors have already promised to buy 23.74 million dollars worth of the new stock. The company will also sell buildings worth 10.5 million dollars to raise additional cash.
OK Zimbabwe owes more than 30 million dollars to suppliers and other creditors. Poor management and tough market conditions created these financial problems. Company officials believe the new money and leadership changes will help the retailer become profitable again.
