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Zico acquires 20% of Precrete
Investment holding company Zico Capital, which is chaired black business personality Sandile Zungu, has acquired a 20% stake in the
local premixed concrete producer Precrete-Nzola(Precrete).
Precrete, which focuses on mine safety, particularly to the platinum mining sector, is jointly owned by Paladin Capital, Thembeka Capital and management.
Zico chief investment officer Tshego Sefolo on tuesday said that the acquisition resulted from Precrete's reputation as a solid business with respectable growth potential.
"Demand and supply forecasts are encouraging and we believe we can add meaningful value in nurturing and growing this investment. Mine safety remain critical in the
industry,"he noted.
Sefolo pointed out that South Africa was a dominant platinum-group metal (PGMs) producer on the global platform.
"Platinum supply is expected to deliver strong production growth and industry experts agree that the relatively constrained capital expenditure and new shaft
development experienced in recent years will likely see a supply deficit in the next three to four years, which will underpin a robust platinum price and further
capital expenditure", he added.
While most of Precrete’s clients were PGMs mines, the company’s products and services were applicable across an array of hard rock mines, including copper,
manganese and gold.
Meanwhile, Zico capital last year announced it intention to acquire 75% of VUYA! Investments, a black women-owned investment company, in its aim to position
itself as an "empowerment consolidator".
VUYA!’s key investment is a 26% take in Henkel South Africa, a specialist chemicals manufacturer with yearly sales worth more than R720-million to the
automotive, retail and industrial sectors – the South African business is also part of a larger German multinational.
Zico is already an active shareholder in companies, such as Fidelity Supercare, Fidelity Cash Management Services, the Taquanta Group, Debris and AutoZone.
The company reported that it would potentially expand its reach further throughout the Southern African region.
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