Fossil readies to take charge of Larfage in Q4 Fossil Miners (Private) Limited will move to take charge at Larfage Cement Zimbabwe during the fourth quarter (Q4) after finalizing a takeover deal announced early this month, the cement maker said on Wednesday. Fossil a relatively unknown outfit with interests spanning from construction to mining clinched a deal to buy Associated International Cement Limited (AICL)’s 76.5% stake in the business for an undisclosed amount. In a special note to shareholders during an annual general meeting on Wednesday, Larfage maintained that it would be premature to disclose how much Fossil would pay for the deal. But it said the Zimbabwean outfit trumped stiff competition for the asset based on its current scope of business and demonstrable ability to run a sustainable operation. “The value of the transaction cannot be disclosed as finalization of the deal is still ongoing. It is expected to be finalized by Q4 2022,” said Larfage, which traded its stock on the Zimbabwe Stock Exchange.
OK flags ‘excessive’ tax regime Retail giant, OK Zimbabwe yesterday said increased tax – related costs are threatening its profitability. OK said inflation adjusted profit after tax for the year ended March 31, 2022, grew by 48.9% to 2.8 billion, from $1,9 billion in the comparative period last year. In the 2021 national budget statement released in November 2020, government announced that business would pay corporate tax in proportion to the gross income that is earned in either currency, excluding retention or liquidity threshold. Also, businesses were told that 20% of locally generated foreign currency receipts would be liquidated at the prevailing auction forex rate. “The group continued to endure excessive IMTT during the year,” OK Zimbabwe chairman Herbert Nkala said. An effective corporate tax rate of 34.3% is unsustainable.” Nkala said overheads grew by 37% over prior year owing to some of these tax charges. Staff costs, electricity charges, rentals, bank charges and depreciation are the cost lines that contributed most significantly to overheads growth,” he added.
"The ZSE closed the week in the negative as all indices traded in the red zone"
The local exchange's losing trend continues as it ended another week on a poor note, weighed down by losses in market heavyweights. Investor confidence in the mainstream All Share Index continues to wane as a result of government policy swings. This has resulted in a seller's market as investors panic and sell their shares while shifting their rtgs balances to alternative investments. The stock market saw a huge increase in trading volumes today, with 4.4 million shares worth $675.56 million changing hands. The financial behemoth, CBZ, led the way, jumping 12 percent to complete the day at $143.00, while dairy processors, Dairibord, rebounded from previous day losses, surging 11.11 percent to close at $50.00.
While ZHL, the reinsurers, fell 9.62 percent to close at $50.00, Ecocash Holdings continued to trade negatively, falling 11.49 percent to $77.42. To $37.93, OK Zim dropped by a further 8.13 percent.
On the ETF market, the OMTT retreated back offsetting yesterday’s gains, losing 6.18 percent, which is 4.35 percentage points less than the Top 10 Index on which it is based (tracking error). While the DMCS and MIZ continued trading flat.