By Alois Vinga
NATIONAL Social Security Authority (NSSA) has moved to finalise the disposal of its 32.5 % stake in the listed construction materials manufacturer, Turnall Holdings.
In an update Tuesday, Turnall’s board chairperson, Bothwell Nyajeka revealed the latest development which could have a material effect on the share price.
“Turnall understands that NSSA has now conducted a tender process for parties who expressed an interest in acquiring its shareholding and that a further announcement will be made in due course. Accordingly, shareholders are advised to continue exercising caution when dealing in the company’s shares,” he said.
On 15 January 2021, the company advised shareholders that it had been notified by its largest shareholder, NSSA of its intention to dispose of its 32.5% shareholding in the business as part of its investment consolidation strategy.
When successfully concluded this transaction could have a material effect on the share price.
Several stakeholders have since voiced their concerns against the decision by the social authority to dispose of stake in several companies.
However, NSSA has maintained that the move is in line with its investment strategy crafted a few years back which aims at deriving maximum benefits from the authority’s investments.
Meanwhile, in the first quarter of 2021 Turnall Group sales volumes marginally increased by 1% over the same period last year despite the two months lockdown in the period under review.
Building products, Concrete and AC Pipes contributed 51%, 48%, and 1% of the volumes, respectively. Building products have declined by 21% compared to last year during the same period whilst concrete products increased by 43% for the period under review.
During the period, capacity utilization improved to 60% compared to 57% in the same period regardless of the effects of Covid-19.
The company’s exports slowed down largely as a result of regional lockdowns and consequent logistics disruptions.
“Turnall looks forward to the roll-out of vaccination programs to give hope of a turnaround in the pandemic and improve overall economic performance, driven by the good agricultural season, continued stability in the exchange rate, stable inflation, and improvement in the efficiency of the supply chain,” added Nyajeka.