Harare - ZSE-listed loss maker, ZECO Holdings Limited, has announced that its new strategic focus from a Rolling stock company to a Residential and Commercial Property Investment and Development company has been approved.
In a circular to shareholders, ZECO advised that following the Company’s Extraordinary General meeting (EGM) held on 17 August 2022, all resolutions set out at the meeting were passed by the requisite majority of shareholders, representing 368 072 508 votes, equal to 79.44% of the total issued shares, which were present in person or by proxy.
ZECO’s Rolling Stock business involved assembling and refurbishing locomotives, manufacturing and refurbishing of railway wagons, Granby cars, coco pans and skips for the mining sector. The fortunes of the business were closely linked to that of defunct state-related businesses, National Railways of Zimbabwe (NRZ) and ZISCO Steel.
The EGM approved among other proposals, the disposal of the Company’s Rolling Stock Assets for an amount of US$4.5 million or Zimbabwe dollar equivalent, and the purchase of residential land, comprising two residential pieces of land measuring 3.6395 hectares with all the developments thereon, situate in the district of Salisbury, called Quinninton Township for a total price of US$2.15 million upon the terms and conditions of the sale and purchase agreement dated 4 January 2021.
Meanwhile, in its previous circular to shareholders, the Company highlighted that the uncertainties surrounding the railway transportation industry over the years and the closure of many mines and the informalisation of the mining sector have put pressure on the Company’s prospects as a Rolling Stock company, hence necessitating the business change.
ZECO further noted that it hopes that the new strategic thrust will enable it to participate in the growth prospects of the property sector. Chiyangwa is not new to the property sector and holds vast tracts of land and developments across Zimbabwe, some of which are allegedly controversially acquired.
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