[2008-10-03]  Zimre engages Govt over Zupco stake
ZIMRE Holdings Limited has engaged Government in an effort to clear the air on the shareholding at the Zimbabwe United Passenger Company.

Zimre invested $10 million in Zupco 10 years ago to acquire 59 percent in the company while Government, through various interventions to revive the company, now claims to be the majority share-holder.

Zimre Holdings chief operating officer Mr Solomon Tembo said negotiations were being held at the highest level.

Mr Tembo said they had written off the investment from their books as the company had recorded successive losses when they took over and because they had not benefited from the bus company by way of dividends.

Mr Tembo said they were seeking to find out what their stake in the company is after Government converted its significant capital injection in loans, grants and guarantees for Zupco into equity.

He added that on finalisation of discussions with Government they would seek to re-evaluate their original investment to ascertain the true position regarding its stake in the bus company.

Zupco has been trying to regain lost ground in recent years after almost sinking into oblivion and losing the tag of the premier urban commuter carrier.

The parastatal started crumbling following the deregulation of the transport sector in 1993. The company could not stand the stiff competition that ensued, resulting in its withdrawal from most major routes.

However, successive intervention has seen the company benefiting from deals crafted by Government that has seen it purchasing buses and engines from Kenya and China and also refurbish some old coaches.

The exercise has enabled it to reintroduce services on some urban and rural routes although it’s a long way from reaching its former capacity.

In addition the Zupco has managed to introduce services to various countries in the region such as Namibia, Zambia, South Africa, Botswana, Mozambique and Malawi.

Meanwhile Zimre Holdings has internalised its tourism entity Solarset.

Zimre Holdings chief operating officer, Mr Solomon Tembo said Solarset was now being used as a hospitalty wing for the group’s clients.

The company, which has a lodge and a house boat on Lake Kariba, would be used to entertain guests of the company.




Source: ALLAFRICA