HARARE- Brainworks is in the middle of concluding a deal involving the sale of a stake it holds in Zim microfinance Getbucks as it seeks to consolidate its non-financial services related investments.
The JSE listed , Mauritian registered and Zimbabwe focused diversified investment holding company, controls 45% of Getbucks while the difference of 55% is controlled by Getbucks International of South Africa. the company also controls African Sun and Dawn Properties both listed companies in Zimbabwe.
In a statement accompanying Brainworks’ full year financials, the company said it entered into aggrement at the end of the year with entities and individulas related to former board members and founders Mr Manyere and Mr Kambwanji for the sale of 163,769,298 shares in Getbucks Microfinance.
The stake was valued at US$5.5 million which a 9% discount to the current valuation on the ZSE. Getbucks’ last trading price of 3.7c gives a valuation of $6.06 million. The counter has however been stable since September 2016. Approvals to the transactions are however subjected to shareholders deliberation according to the JSE listing rules, which will effectively drag the disposal process.
To avert the immediate cashflow need at Brainworks the Buyers are reported have advanced the consideration of US$5.5 through a loan which bears an interest of 9% per annum to Brainworks. The principal amount together with summation of the accrued interest will therefore settled through the delivery of the Getbucks shares on approval of transaction by the shareholders.
The process of undertaking shareholders approval is still on the way and it is expected that by the end of the second quarter of 2018 it will be successfully obtained. in justifying the disposal Brainworks said it reconstruct its balance sheet with a view to reducing gearing. as at December Brainworks had a $38 million debt sitting on its balance sheet which it argues was one of the key perfoamance dampeners in the period.
The company reported at loss of circa $6 million despite strong performances at all units including at Getbucks.