NSSA to acquire stake in Silo Foods

Zimbabwe’s state owned pension fund, the National Social Security Authority (NSSA) intends to acquire about 35 percent shareholding in Silo Foods.

According to a latest report on the update of privatisation of state enterprises by the Treasury, Silo Foods is currently undertaking a due diligence exercise and Ernst & Young was appointed transactional advisors.

The Treasury said Global Genesis has since completed the valuation report of Silo Foods and prepared the negotiation strategy document for the technical team to assist in the negotiations with NSSA.

No official comment could be immediately obtained from NSSA.

Silo Foods Industries was last year unbundled from the Grain Marketing Board to become a standalone business unit and the firm’s outlets sell basic commodities such as mealie-meal, beans, rice, coffee, wheat flour, salt and samp as well as stockfeeds at reasonable prices.

Last year, the Treasury injected $70 million into the business to ramp up production. In April last year, Silo Foods Industries announced that it was seeking strategic partners to inject US$55 million to boost its operations.

Meanwhile the Government has started the process of officially terminating the National Railways of Zimbabwe agreement with DIDG Transnet Consortium so that fresh tenders can be invited.

The Government cancelled the US$400 million NRZ-DIDG-Trasnet Consortium due to lack of progress.

“The NRZ board has written to the consortium as guided by Attorney General’s office to initiate the formal tender termination process, which will eventually involve PRAZ writing to the consortium formally cancelling the award,” said the Treasury.

A new recapitalisation tender can only be issued after the formal cancellation of the previous tender.

It said NRZ was in discussion with a number of potential funders and equipment suppliers for a phased recapitalisation plan. – Herald