OK Zimbabwe To Sell Multiple Properties

OK Zimbabwe has announced its strategy to raise capital through the sale of a portfolio of properties. This initiative aims to generate US$10.5millionfrompropertydisposals,complementingaplannedUS$20 million rights issue, to stabilize operations and settle outstanding debts, including US$24 million owed to suppliers.

Here’s the complete list of properties slated for sale, along with important details:

Properties for Sale:

• OK Mbuya Nehanda (Harare)
• OK Glen View (Harare)
• Birmingham Warehouse (Harare)
• OK Gweru (Gweru)
• OK Malvern (Harare)
• Stand 6464, Ordar Township (Harare)
• Stand 39, Odar Township (Harare)
• Stand 19676, Harare Township of Borrowdale (Harare)
• Mutoko Stand (Mutoko)

Key Details Regarding the Sales:

• Mortgaged to FBC Bank Limited: The proceeds from the sale of OK Mbuya Nehanda, OK Glen View, and Birmingham Warehouse will be mortgaged to FBC Bank Limited.
• Pledged to National Building Society: OK Gweru, OK Malvern, Stand 6464 Ordar Township, and Stand 39 Odar Township have been pledged to the National Building Society.
• Pledged to CBZ Bank Limited: Stand 19676, Harare Township of Borrowdale, has been pledged to CBZ Bank Limited.
• Leaseback Arrangements: For properties currently occupied by OK Zimbabwe (OK Mbuya Nehanda, OK Glen View, OK Gweru, OK Malvern), the sale will only proceed if buyers agree to long-term leaseback arrangements. This ensures the company can continue its operations from these sites without interruption.
• Other Disposals: Stand 19676, Harare Township of Borrowdale and the Mutoko Stand are also on the disposal list as part of the capital-raising efforts.

OK Zimbabwe recently held an extraordinary general meeting (EGM) to approve significant changes to its board of directors as part of a broader company restructuring. This process is designed to support a transformation strategy and ensure stronger corporate governance.

Key Proposed Changes

• Board Reconstitution: Shareholders have authorized a complete overhaul of the board. This means the current directors will be stepping down, and new members will be appointed in line with the company’s transformation goals and legal requirements.

• Executive Chairman Appointment: Willard Zireva, a former long-serving CEO of the company, has been named executive chairman. His appointment is intended to provide experienced leadership during this period of transition.

• Ongoing Appointments: Additional directors will be selected and announced as the restructuring process continues. These appointments will be made in compliance with company rules and stock exchange regulations.

• Shareholder Communication: The board is expected to provide a full report on the changes and any significant asset sales in the next annual report, ensuring transparency with shareholders.

The decision to reconstitute the board follows a period of operational and financial challenges for OK Zimbabwe. Major shareholders reportedly called for fresh leadership as a condition for supporting necessary capital raises and turnaround efforts. The previous board, including the chair and several long-standing members, has already retired from their positions.

• Previous Board Retired: All former board members have stepped down as part of the transformation process.

• New Leadership in Place: Willard Zireva is now serving as executive chairman.

• Future Appointments: The process to appoint new directors is ongoing, and further announcements are expected in due course.