ENG to list on ZSE

By Darlington Musarurwa
ENG Capital Holdings, which faced the possibility of closure after the 2004 local banking crisis, is considering listing on the Zimbabwe Stock Exchange (ZSE) in the next 18 months in a process that is expected to raise an estimated US$5 million.

The holding company’s investment and asset management arms were placed under voluntary liquidation in February 2004.
However, liquidator Mr Reggie Saruchera, managing partner of Grant Thornton Camelsa, noted that the assets of the liquidated firms were actually in excess of the liabilities.


In an interview with The Sunday Mail Business last week, ENG Capital Holdings co-director Mr Gilbert Muponda said the company is planning to allocate between 5 percent and 10 percent of shares to its creditors and clients.

He also indicated that the listing is not being pursued to raise money but to “broaden and strengthen our shareholder base”.


“Our main reason to seek a ZSE listing is not to raise money but rather to broaden and strengthen our shareholder base.

“There are people who have been loyal and supportive to ENG Capital since day one and throughout the difficulties, and we firmly believe they should be rewarded with shareholding.

“These include the former ENG creditors who have fully been re-paid, but we still feel they deserve a share allocation. In addition, there are well-wishers and sympathisers like the close to 10 000 Facebook friends and fans on my account and the ENG account who have been supportive and shown great loyalty under very challenging circumstances.

“These individuals deserve an allocation of shares to share in the growth.

“So, 5 percent to 10 percent of the company will be allocated to these groups as a gratuity for the unwavering loyalty.
“We intend to list on the ZSE within the next 18 months, most likely via a market introduction. At this stage it’s unclear how much we will seek to raise but a general estimate is around US$5 million depending on market conditions given how illiquid the market is,” said Mr Muponda.


It is believed that initial valuations of the excess assets have indicated that there is sufficient value and operation capacity to meet and exceed all the ZSE listing requirements.

Also a local financial institution has been appointed lead financial advisor to handle the proposed listing of ENG.
Presently, ENG Capital has engaged the Reserve Bank of Zimbabwe and other regulatory authorities in an attempt to resume its business in Zimbabwe, building on the excess assets that were returned to the directors and shareholders.

It has since been established that Allied Conveyors, a firm which manufactures mining equipment for both the local market and the region, has been handed over to the directors.

Despite pursuing a listing on the local bourse, ENG contends that it must be given back its bank, which has since been merged into Interfin Banking Corporation.

According to the ENG boss, the merger of Century Bank, which was an ENG subsidiary, with other financial institutions was irregular and illegal since it was in contravention of the Anti-Corruption Act of Zimbabwe.

Added Mr Muponda: “CFX Bank was a product of an irregular and illegal merger between Century Bank (an ENG subsidiary) and CFX Bank. I challenged that merger on various grounds highlighting its illegality and irregularity through High Court case HC 6244-04.

“My co-director, Nyasha Watyoka, supported this motion by filing a supporting affidavit. We and our lawyers — Messrs Ziweni and Company — were specified as a way to incapacitate us from completing HC 6244-04.

“As you are aware, according to the Anti– Corruption Act of Zimbabwe, assets of specified persons cannot be legally sold, bought or disposed of as they are part and parcel of an investigation and evidence in legal proceedings.


“In short, according to the Zimbabwean law, you cannot sell assets which are subject to legal proceedings which assets would be required as evidence in those proceedings.”
ENG is still challenging the process in the courts.


The Affirmative Action Group (AAG) recently urged the central bank to reinstate the ENG licence.
In the aftermath of the banking crisis, most of the banks whose balance sheets were considered to be wobbly were placed under curatorship.


Trust Bank, Royal Bank, Time Bank and Barbican Bank have been re-licensed.
Royal and Trust Banks have resumed operations while Time Bank and Barbican Bank are still making preparations to open their doors to the public.- The Sunday Mail