Brainworks pursues Mauritius listing

rbzrBrainworks Capital Management says it has made significant progress towards listing in Mauritius in a process, the investment firm hopes will be completed by the end of this month.

Mr Patrick Matute, Brainworks Head of Advisory told a Comarton Consultants event last Friday that the listing in Mauritius would not be through an IPO, but the company would do so by way of introduction.

“We have applied for listing. The rationale is to provide liquidity for shareholders as well as list on an international exchange. Initially we wanted to complete the process by September, but we hope it will be done this month.”

Mr Matute said one of the approval conditions given by the Reserve Bank of Zimbabwe (RBZ) is that within 12 months of listing in Mauritius, the group will also have to list on the Zimbabwe Stock Exchange.

“We have already started engaging the ZSE and they are awaiting our application,” he said adding that the other outstanding issue was for Zimra to approve the reorganisation of the company.

Brainworks investments include Getbucks, Getsure, FMO Trucks, African Sun, Dawn Properties, and Dawn Properties Consultancy. The company also has a 2,5 percent stake in Getbucks group which operates in nine African countries.

Mr Matute said in the last four to five years the company has raised over $80 million which is spread across its various investments.

In particular, the company raised $35 million in March this year, to strengthen its units with key focus on increasing the African Sun stake and more importantly acquiring a stake in Telecel which, however, did not materialise.

On performance of the units, Mr Matute said Getbucks had made $4,5 million in its initial year which ended in June. Brainworks is a 45 percent shareholder in the company.

Afrisun is still in the process of restructuring its business, a process which will result in cost savings of $1,2 million. The hotelier had also entered into a management contract with the Legacy group to manage five of its properties.

Mr Matute said Dawn Properties has started to sweat its balance sheet beginning with the 300 hectares of land in Marlborough.

“Starting this October we are starting the construction of 56 units which were reduced from 76 by the Environmental Management Agency.”

The group’s FMO Oil, a fuel logistics company is targeting 50 trucks from the current 18 by next year.

Mr Matute said fuel logistics companies in Beira and DRC require at least 30 trucks to be awarded a dedicated licence as opposed to the current where the company is operating as a sub-contractor.

The company requires $2 million to increase the loan. The company is looking to borrow the $2 million under a two-year facility at 15 percent using Dawn shares as security.

“The business is able to self-generate adequate cash flows to service the loan. It is currently servicing a $1 million loan from a local bank,” he said.

Brainworks is also looking at setting up operations in Equatorial Guinea. – Wires.