Tinashe Makichi Business Reporter
Innscor Africa has lined up acquisitions in the light manufacturing industry, among other areas of importance as a strategy to achieve growth and expansion, group chief executive Mr Antonio Fourie said. The diversified group also plans to unbundle and consolidate some of its units. Despite those efforts, Innscor has, however, been on a collision course with authorities over its aggressive expansion strategy as the market expressed fears of an imminent monopoly in some sectors.
Speaking on the sidelines of the company’s EGM to approve the unbundling and separate listing of Innscor’s QSR business, Mr Fourie said the group is still looking at acquisitions that can buck up the business.
“We are looking at expanding on acquisitions that can buck up our business in areas of importance and in particular light manufacturing. We are looking at a number of opportunities and all things being equal we need to adhere to all the regulatory demands so that we do things right in the process. There are acquisition opportunities particularly in the light manufacturing that I think we should take advantage of,” he said.
The conglomerate, which became the first ZSE listed firm to hit the $1 billion revenue mark in 2014, said unbundling will unlock value to Innscor Africa Limited shareholders and allow investors choice and also enhance better portfolio management. Mr Fourie said the group has a focused strategy to achieve organic and acquisitive growth, improve margins and reduce costs towards achieving target return on equity and cash generation objectives.
Shareholders yesterday unanimously voted in favour of the unbundling of the QSR business from Innscor and its separate listing on the ZSE. Innscor Group corporate finance director Mr John Koumides said there is opportunity for growth in the QSR business but regional units have been hit by the devaluation of regional currencies hence affecting their performance.
“The market is difficult and the past three months have been hard but under such conditions the QSR business has a strong balance sheet, good footprint and well established brand that is dominant,” said Mr Koumides.