Zimbabwe will seize Conafex estates
August 19, 2004
By Dirk van Vynck
Cape Town - Conafex Holdings, the agriculture resource group listed on both the JSE Securities Exchange and the Luxembourg bourse, has received notice from the Zimbabwean authorities that its agricultural estates are going to be seized.
The company said: "The government of Zimbabwe has advised Conafex's Zimbabwean subsidiary, Zimcor, that all its agricultural estates are to be compulsorily acquired with immediate effect. The implications of this action and the matter of compensation are not yet clear."
Chris Jousse, Zimcor's chief executive, could not be reached yesterday to comment on the impact the seizures would have on Conafex's overall performance.
But according to Reuters, staff at the company's Harare office said Conafex had "substantial" investments in Zimbabwe.
Fortunately the group has been diversifying its operations into other areas in the region in order to free it from reliance.
This has led to the company selling Barato Holdings, its wholly owned subsidiary in Zimbabwe, and acquiring a 17.5 percent stake in JSE-listed Intertrading, which specialises in the procurement and international marketing of fruit.
There was no trade in Conafex's shares yesterday with the price unchanged at R10.50. The food producers and processors index as 0.08 percent higher.
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