Home » Industry » IDC to Dispose of Its Amtec Equity

THE Industrial Development Corporation through its subsidiary, Motec Holdings, is disposing of its 55 percent equity in Amtec, a retailer and service provider for motor vehicles, trucks and parts to raise money for new investments. This comes barely two weeks after the IDC invited bids for the disposal of Motec’s 100 percent shareholding in the coach building company, Deven Engeneering last month.

Another Motec co-shareholder in Amtec, Inchcape is also selling its 14,9 percent in the company.

Amtec owns three renowned franchises and has five branches in Harare, Bulawayo, Gweru and Mutare.

“Proceeds of the sale will be utilised to fund new ventures in line with the IDC’s mandate that entails establishing new industries and facilitating, guiding and promoting the financing, reorganisation and development of existing industries,” the IDC said.

Amtec provides support services in terms of repairs and marketing of the whole range of the Mazda and Nissan vehicles.

The IDC last month put its subsidiary Deven up for sale.

IDC general manager, Mr Mike Ndudzo said the disposal of Deven Engineering followed the dramatic market shift from the traditional coach building of 65 seater locally assembled inter and intra city and rural buses for public transport to the 15 seater imported kombis.

The move has also been necessitated by the increasing numbers of fleets of second hand ex-Japan vehicles now plying the roads which has forced coach suppliers to shift from the 65-seater model.

Deven operations have since been moved to Willowvale Mazda Motor Industries workshop to pave way for disposal of land and buildings were Deven previously operated from, with the proceeds earmarked for recapitalising WMMI.

Mr Ndudzo said Deven will continue operating on the new site to rehabilitate the old fleet as and when demand arises and also to offer development engineering and fabrication services to industry and the mining sector.

Deven will continue with the importation of the Yutong range of new public transport buses as a transitional measure to stay in business on a very much smaller staff compliment than before, which is unfortunate, but a necessary adjustment to the rapidly changing market dynamics and preferences since dollarisation.

Source : The Herald