Home » Industry » SA Firm Wins Bid to Buy Homelink

ADDAX Trading, a South African-based company has won the bid to buy Homelink Private Ltd for $22 million, sources familiar with the transaction said.The company won the bid ahead of other contenders including a management consortium and its foreign partner as well as OK Zimbabwe who were also in the race for the stake.

Homelink is 100 percent owned by the Reserve Bank of Zimbabwe through its vehicle Fintrust.

“Addax outbid other willing investors but they are some conditions precedent,” said one source.

No official comment could be obtained from the Reserve Bank by the time of going to print.

The central bank re-tendered the sale of its 100 percent stake in Homelink in compliance with the Reserve Bank Act which requires it to dispose of its non-core assets.

KM Financial Solutions Ltd was appointed financial aisors for the disposal of the assets. Other assets being sold by the RBZ include 70 percent shareholding in Tuli Mine, 50 percent in Transload (Private) Limited, 65 percent equity in Scientific Research and Industrial Development Corporation and its 100 percent stake in Carslone Enterprises.

The Reserve Bank has already sold its 59 percent stake in Zimbabwe Stock Exchange-listed Tractive Power Holdings to Zimplow Limited in a deal worth about $10 million.

Last year, Japanese coating company Kansai Plascon Limited acquired RBZ’s 63 percent shareholding in Astra Industries. It is in the process of selling its 64 percent stake in Cairns Foods.

Homelink was incorporated in February 2005 with the primary objective of mobilising foreign currency remittances from the diaspora when Zimbabwe was facing serious foreign currency shortages.

Over the years, the company adapted to the changing business environment and transformed itself into a financial services company.

It has widened its market to include local Zimbabweans. The company is offering a wide range of financial service products, which include home loans, micro-financing, property construction, property management and money transfer services.

Under its portfolio, Homelink runs a housing development scheme, a mortgage financing scheme for non-residents and locals. The Housing Development Scheme has seen more than 600 Zimbabweans at home and abroad becoming homeowners.

Homelink gives clients 10-year tenure on housing loans. Through the scheme, Homelink has constructed houses as a way of alleviating the shortage of houses in the country.

Easylink Money is Homelink’s brand for money transfer business.

Easylink started operations in May 2010. Easylink works in partnership with a leading and reputable international money transfer agency that has an established global network.

In adapting to the changing economic environment, as well as offering clients up to date and relevant products, Homelink introduced Microlink Short-Term Loan facility. Micro-finance products offered include personal loans, car loans, educational loans and SME loans.

Source : The Herald