HARARE- ZECO Holdings Limited shareholders approved the transition of the company to a property development entity at an extraordinary general meeting this morning.
The company listed as an engineering company in 2007 whose primary business involved the assembly and refurbishment of locomotives, the manufacture and refurbishment of railway wagons, Granby cars, coco pans and skips for the mining industry.
However, the uncertainties surrounding the railway transportation industry
over the years, the closure of many mines, and the informalization of the mining sector have put paid to the company’s prospects as a rolling stock company.
To ratify the transition, shareholders approved the disposal of the company’s rolling stock assets for US$4.5 million or Zimbabwe dollar equivalent at the interbank rate and the purchase of residential land, comprising two residential pieces of land measuring 3.64 hectares in Quinninton township for total price of US$2.15 million.
The rolling stock assets were purchased by Eagletron International (Pvt) Ltd whose principal business activities are steel retailing and manufacturing of various building and mining materials which include reinforcement steel, IBR roof sheets and brickforce.
“The new strategic focus will enable the company to participate in the growth prospects of the Property Development sector which appears to have better prospects than the rolling stock industry,” said board chair Engineer Benjamin Rafemoyo.
ZECO plans to finance the new business using a combination of internal funds, bank borrowings as well as working with joint venture partners who will be able to provide funding for projects.