HomeBusinessChidawu divests out of ABCH

Chidawu divests out of ABCH

Chris Muronzi

BUSINESS magnate Oliver Chidawu has divested from African Banking Corporation Holdings, businessdigest has established.

Chidawu sold a parcel worth US$6,6 million, accounting  for 15% of the group’s total issued share capital. The businessman sold 15 million shares in the regional banking group in Tuesday’s trade at 44 cents per share.

 

Lynton Edwards stockbrokers sold to a buyer widely believed to be a foreigner.

The businessman last year also disposed off his shareholding in agri-implements maker –– Zimplow.

Chidawu off-loaded a 32% stake in  Zimplow.

He cashed in about US$3,2 million from the sale of his 105 million shares and US$126 000 from dividends.

Chidawu has interests in banking, mining, and construction sectors.

The latest disposal comes after rife speculation in recent weeks that the businessman and investor was on the market.

When reached for comment on Wednesday, Chidawu denied selling any shares. Further efforts to get comment from him proved fruitless as he said he was in meetings.

But market sources say Chidawu, whose shareholding is camouflaged in various investment vehicles, disposed off his shareholding.

According to the latest ABC Holdings top 20 shareholder register, Les Nominees, an investment vehicle housing Chidawu’s 12,8 million shares (8,74%) in the company, sold its equity.

Premier Asset Management (Pvt) Ltd has since increased its shareholding from 1,7% of the banking group’s total issued share capital to 10,03%.

Another known Chidawu investment vehicle, Broadway Investments, also sold its shareholding, according to the shareholder register.

Broadway held just under 1% of ABCH’s total issued share capital.

But market sources say he held slightly above 18% of ABCH.

Chidawu founded and manages the Kuchi Group of companies that is active in building and electrical contracting. He is also a major shareholder in Bitumen Construction Services and Heritage Insurance Company. He was a founding shareholder and director of Heritage Investment Bank that merged with First Merchant Bank in 1997 and quit chairmanship of African Banking Corporation (Zimbabwe) recently.

He sits on many other listed and private companies boards in various industries including financial services, construction, manufacturing, waste management and is also a shareholder in Freda Rebecca Gold Mine, Bindura Nickel Corporation, and its holding company Mwana Africa Plc.

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