Zimbabwe Regulator to Investigate Murray & Roberts Zimbabwe Sale

The Securities Commission of Zimbabwe will investigate the sale of Murray & Roberts Zimbabwe Ltd. (MR) to Zumbani Capital (Pvt) Ltd., said Tafadzwa Chinamho, the regulatory authority’s chairman.

“We’re probing that deal following complaints from some minority shareholders, brokers and foreign investors,” Chinamho said in a phone interview from Harare today.

Zumbani Capital bought 47 percent of Murray & Roberts Zimbabwe for 1.47 U.S. cents a share, 79 percent less than the last traded price of 7 cents.

Zumbani Capital is owned by Zimbabwean investors including the current chairman and the previous chief executive officer of Murray & Roberts Zimbabwe, Ed Jardim, a spokesman for Murray & Roberts Holdings Ltd. (MUR), said in an e-mailed response to questions on May 3. Murray & Roberts Zimbabwe is a unit of Murray & Roberts Holdings.

Paddy Zhanda, former Murray & Roberts Zimbabwe chairman, and Canada Malunga, the company’s chief executive officer acquired a “significant stake” in the company, alongside closely held South African company Carlmac Steel and Brait SE (BAT), the Zimbabwe Independent said May 10.

To contact the reporters on this story: Godfrey Marawanyika in Johannesburg at gmarawanyika@bloomberg.net; Brian Latham in Johannesburg at blatham@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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