ZIMBABWE’S largest conglomerate by revenue,Innscor Africa Limited, has disposed its interest in SPAR Corporate Stores in Zimbabwe pursuant to the group’s strategy of focussing on core business.
The group which last year said was in talks to acquire three local companies to expand its portfolio across various sectors of the economy to minimise risk, made the announcement to dispose SPAR on Tuesday in a statement.
“Pursuant to Innscor Africa Limited’s strategy of focussing on core business, the board of directors announces that the group has with effect from January 1, 2016, divested its interest in the six SPAR Corporate Stores which it operated in Zimbabwe,” said Innscor.
Total revenue and total assets contributed by the SPAR Corporate Stores to the overall group for the year ended June 30, 2015 was US$52,8 million and US$14 million respectively.
“Further details regarding this transfer will be made available in the group’s upcoming statement of interim financial results to December 31 2014,” Innscor said in the statement.
Innscor Africa Limited reported a nearly seven percent decline in revenue to US$814 million, excluding the discontinuing takeaway operations set to be unbundled, in the full year to June 30 as key units performed poorly, leading to management overhauls in some of them.
The FMCG group in 2014 became the first Zimbabwean business to record US$1 billion turnover, but the conglomerate suffered disappointing trading performances in some key units last year and hopes management changes will breathe new life into the subsidiaries.
Last year Innscor announced that it would consider unbundling more of its units to unlock shareholder value.
The group also unbundled the QSR business, which is now known as Simbisa Brands. SimbisaBrands became the first listing since the Zimbabwe Stock Exchange adopted an automated trading system when it was admitted as the 64th company on the domestic bourse.
The local bourse automated in July, last year resulting in improved efficiencies in terms of price discovery, speed of trade execution, reduced errors and provision of real time data.
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