OK Zimbabwe plans to sell several stores to raise money for its struggling business. The retail company needs 30 million dollars to pay debts and restock its shelves. Most of the debt goes to suppliers who provided goods to the chain. Company leaders announced a plan to solve their money problems through two main steps.
The first step involves asking current shareholders to buy more company stock. This rights issue should bring about 20 million dollars into the business. The second step requires selling company properties worth 10.5 million dollars. Together these moves should provide enough cash to stabilize operations.
The company will sell or mortgage nine different properties across Zimbabwe. Major stores like OK Mbuya Nehanda and OK Glen View face sale or mortgage deals. Other locations such as OK Gweru and OK Malvern will help generate the needed funds. Various banks will handle the mortgage agreements for different properties.
Large shareholders have promised to support the fundraising plan. NSSA and Datvest Nominees each control about 19 percent of company shares. Old Mutual owns 11 percent of the business. These major investors provided bank guarantees covering most of the expected money from new stock sales.
The rights issue structure prevents any single investor from taking control of OK Zimbabwe. Current rules require mandatory buyout offers when someone owns more than 35 percent of a company. The underwriting arrangement keeps all investors below this threshold.
The first step involves asking current shareholders to buy more company stock. This rights issue should bring about 20 million dollars into the business. The second step requires selling company properties worth 10.5 million dollars. Together these moves should provide enough cash to stabilize operations.
The company will sell or mortgage nine different properties across Zimbabwe. Major stores like OK Mbuya Nehanda and OK Glen View face sale or mortgage deals. Other locations such as OK Gweru and OK Malvern will help generate the needed funds. Various banks will handle the mortgage agreements for different properties.
Large shareholders have promised to support the fundraising plan. NSSA and Datvest Nominees each control about 19 percent of company shares. Old Mutual owns 11 percent of the business. These major investors provided bank guarantees covering most of the expected money from new stock sales.
The rights issue structure prevents any single investor from taking control of OK Zimbabwe. Current rules require mandatory buyout offers when someone owns more than 35 percent of a company. The underwriting arrangement keeps all investors below this threshold.
