[2008-05-29]  Olympia Capital Eyes another Acquisition
The takeover master in the publicly trading construction sector, Olympia Capital Corporation (OCC), says it is eyeing another acquisition in Cape Town, South Africa, which is expected to make its shareholders smile, as it will not ask them to part with any thebe. The Chief Executive Officer of the company, Michael Matu, says the acquisition of the unnamed concern, which is in the manufacturing industry in South Africa, is in the final stages of completion.” This acquisition will be totally funded by debt, internal resources and an advance from our parent company, Olympia Capital Holdings Limited, which is quoted in the main board (of the) Nairobi Stock Exchange (NSE) and has a successful US$6.8 million (about P43.8 million) rights issue in late 2007," explained Matu. "We do not intend to seek further funds from our shareholders," he added. The company, which originates from Kenya, listed on the Botswana Stock Exchange (BSE) in 2005 as a "speculative stock" and later migrated to the main board in 2007, resulting in an increase in the number of shareholders, including those carrying cash, like fund managers. If the acquisition of the unnamed target bears fruit, it will add to a list of other successful takeovers that the company has made since 2002 after acquiring the vinyl maker Kalahari Floor Tiles (KFT), based in Mogoditshane. It also acquired Botswana Fine Industrial Chemicals (BOTfic) in 2005 with the expectation that the entry into cleaning and hygienic chemical lines would have a favorable impact on top and bottom line growth. The other acquisition Olympia made was Plush Pty (PP), a South African manufacturer, importer and fitter of blinds and window accessories based in Johannesburg. Olympia is in the business of acquiring businesses in the building material sector, which are strong brands, but facing liquidation. Equally, it acquires those businesses with a strong market share but which are poorly managed, and targets acquisitions locally and regionally sized between P1 million and P10 million, especially in the lucrative market in South Africa. Meanwhile, the group's turnover for the year ended February 2008 increased from P26 million to P114 million with profits from operations increasing P1.6 million to P5.9 million. However, Matu says it is difficult to compare the current results with the previous ones because the company made significant acquisitions during the period. He added that Botswana operations were the "real star" in the group, both in the increase in top line and in contribution to profitability. Olympia is a subsidiary of Olympia Capital Holdings of Nairobi and was initially Dunlop Kenya Limited
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