Sale Of David Whitehead Textiles Raises Serious Concerns
There are concerns over the sale of 51% equity stake in the David Whitehead Textiles Ltd (DWTL) by the company’s judicial manager Knowledge Hofisi without consulting shareholders and creditors. The stake is reported to have been sold to a creditor at a grossly discounted price in RTGS dollars when real and productive assets are being sold in US dollars.
Hofisi is reported to have sold controlling shareholding in the company to Agri Value Chain Zimbabwe (AVCZ) which is owed RTGS$3 million by David Whitehead.
The 51% equity stake is reported to have been sold at only RTGS$5,4 million t the shock of shareholders and creditors. They have since questioned how Hofisi managed to arrive at such valuation after he had failed to produce financial statements of the company since his appointment in 2014.
In a statement this week, DWTL shareholders said:
We, the shareholders and creditors of David Whitehead Textiles Ltd would like to distance ourselves from the press statement issued on Friday 1 June 2019 by the judicial manager. We are not aware of the finalisation or completion of the purported 51% acquisition of DWTL by AVC represented by PK (Pradyumin Ganediwal), as reported in The Herald of 05 Tuesday 2019.
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Shareholders and creditors have not been informed of any invitation for bids to potential investors, let alone any negotiations that took place between the company and AVC.
The statement also reveals that a 2018 meeting was adjourned after Hofisi failed to provide shareholders and creditors with detailed financial statements.
More: The Independent
