ZECO Holdings shifts focus to property market

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By Alois Vinga

LISTED steel fabrication and installation firm, Zeco Holdings Limited, has notified shareholders of the recent redirection of strategic focus, which has seen the company redirecting focus towards residential and commercial property development.

The company was incorporated in Zimbabwe by the Registrar of companies in terms of the Companies Act on 19 November 2007 under registration number 30287/2007 in order to consolidate the ownership of Delward and Crittall- Hope.

Delward is the core business of Zeco Holdings Limited and was involved in the manufacture and rehabilitation of rolling stock as its core business, while Crittall – Hope was involved in the fabrication of products required in the construction industry such as door and window frames, roller shutter doors and fittings.

The demand for rolling stock products in Zimbabwe was primarily driven by the National Railways of Zimbabwe (NRZ) and the mining sector.

However, 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 paid to the company’s prospects as a Rolling Stock Company, with the company’s shareholders having gone for years without enjoying any capital appreciation or earning a dividend.

In a notice to shareholders, Zeco Holdings Non-Executive chairman, Engineer Benjamin Rafemoyo,  said the latest move was inspired by the desire to change the company’s strategic focus.

To this end, the company has disposed of Rolling Stock Assets for an amount of US$4,5 million and also purchased a residential piece of land measuring 36395 square meters with all the developments thereon in Harare for a price of US$2,15 million.

“In order to unlock shareholder value, the Board of Directors has resolved to change the strategic focus of ZECO Holdings Limited from a Rolling Stock company to a Residential and Commercial Property Investment and Development Company.

“The purpose of this Circular is to provide the Shareholders with relevant information regarding the change of strategic focus, including the background and rationale for the change in strategic focus, and to seek shareholders’ ratification of the change in strategic focus at the forthcoming Extraordinary General Meeting,” said ZECO.