CFI receives offers for Langford Estate
AGRO-industrial group, CFI Holdings Limited has received offers from potential buyers for its Langford Estate in Harare South.
Group chairperson, Grace Muradzikwa, said they were now evaluating offers before engaging CFI shareholders to consummate the deal.
“We have serious offers from banks and developers and we are evaluating them so we only accept offers that we believe will provide the right value to our shareholders,” she said.
“Once sufficient progress has been made, we will engage our shareholders as the values involved require such approvals in terms of the Zimbabwe Stock Exchange approval limits”.
CFI resolved to sell most of its estates last year in order to raise money needed to expunge its debts.
It owes FBC Bank, Agribank, CBZ, the Infrastructure Development Bank of Zimbabwe, NMB and Standard Chartered a combined US$18 million.
CFI is the holding company of several units such as Agrifoods, Crest Breeders, Victoria Foods and Farm and City Centre.
It also has an interest in real estate.
Langford Estate’ sole asset is 834 hectares of undeveloped urban land located in Harare South.
CFI is currently operating in the red.
In the six months to March 31, 2016, it reduced its loss position to US$3,3 million from US$3,7 million in the same period last year.
Commenting on measures the group is taking to improve its working capital position, Muradzikwa said CFI was restructuring in order to align its businesses to the current environment.
“Regarding working capital, the following initiatives are currently being pursued, which include disposal of non-core assets to fund the strategic businesses of the group. We are also disposing undeveloped pieces of land in Harare South. The group is also inviting technical partners to certain sectors of our businesses for skills and technological transfer and also boost capital in those businesses and equity capital from shareholders to provide viability and profitability across the group,” she said.
Muradzikwa said CFI remains a strategic business with great potential and capacity to assist the economy and the nation at large in the provision of housing and food security.
“As a board, we are cognizant of its (CFI) national importance and are very keen on capacitating the relevant business to achieve their potential,” she said.
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