Brickmaker Willdale’s shareholders have approved the company’s proposal to dispose of 190.1 hectares of its land for $4.75 million, which will be used to settle part of the company’s debt obligations.
The land is currently not suitable for mining clay used in brick manufacturing.
Chief executive Nyasha Matonda said after the extraordinary general meeting extinguishing its total debt, which amounts to over $6.8 million, the company will have capacity to borrow and expand operations.
“We are seeing the market for bricks growing, owing to various government supported housing projects thus we need to move in tandem with anticipated demand and grow our production,” he said.
Matonda said there were several bidders for the land.
The minimum selling price is $2.5 per square meter which gives total gross consideration of at least $4.75 million.
In 2014, the company raised $3.2 million through a rights offer in a bid to replace and refurbish plant and machinery, resulting in production capacity increasing by 67 percent to 10 million bricks per month from 6 million previously.
Matonda said in the current year production delayed due to incessant rains, which came early and extended well into the year.
“As a result we only have a month production and we anticipate increasing capacity during our peak period so that there will be no much variation on our set targets,” he said.
Top shareholders of the company include Dahaw Trading (Pvt), Ranus Investments (Pvt) and Old Mutual Life which hold 39.55 percent, 22.64 percent and 15.36 percent respectively. – The Source