Zimasco (Pvt) Ltd Fights Back Against Hostile Take...

Zimasco (Pvt) Ltd Fights Back Against Hostile Takeover

Zim Now Reporter

Zimasco (Pvt) Ltd has initiated legal action to contest a court ruling that would allow Avim Investments (Pvt) Ltd, owned by Kwekwe businessman Shepard Tundiya, to take control of the mining enterprise.

The dispute stems from a recent High Court directive, obtained by Avim Investments Pvt, which aimed to transfer authority of the prominent mining and chromite ore smelting company.

However, Zimasco argues that the order, issued by Justice Mambara, was erroneously directed at "Sinosteel Zimasco (Pvt) Ltd," a non-existent and unregistered entity, a fact corroborated by company registry records.

Despite this error, Tundiya, along with Wilson Manase and businessman Denny Marandure, reportedly attempted on March 17 to seize control of Zimasco's Ecobank accounts. They did so by instructing the bank to change the designated account signatories to their own.

Ecobank refused to execute the instruction, citing that the court order did not apply to Zimasco (Pvt) Ltd.

Furthermore, the order had not been served on Zimasco Pvt Ltd but was instead presented directly to the bank.

Following the failed attempt at the bank, the individuals visited Zimasco (Pvt) Ltd’s head office, claiming authority to take over the company’s management under the purported court order.

Zimasco Pvt Ltd management contends the order was against Sinosteel Zimasco (Pvt) Ltd, not Zimasco (Pvt) Ltd and rejected their actions.

Avim Investments, with the assistance of Kwande Legal Practitioners, later filed an application to "correct" the court order, to show that Sinosteel Zimasco (Pvt) Ltd was operating as Zimasco (Pvt) Ltd.

This application was heard by Justice Mambara, who granted the order within just three hours—without serving it on Zimasco (Pvt) Ltd, an interested party, company sources said.

The company said it was never notified, even though it was an affected party.

Neither Zimasco nor Ecobank were served.

Armed with the modified court order, Manase and his associates renewed their attempt to gain control of Zimasco’s accounts. Ecobank again refused to comply, maintaining that the corporate rescue order applied to Sinosteel Zimasco (Pvt) Ltd, not Zimasco (Pvt).

In response, Zimasco (Pvt) Ltd has urgently filed a High Court application to block the court order.

The company has also lodged formal complaints with the Judicial Service Commission regarding Justice Mambara’s handling of the matter and with the Law Society of Zimbabwe against Manase & Manase and Kwande Legal Practitioners for alleged unethical conduct.

Sources say the Chinese embassy in Harare has expressed strong concern over the attempt to seize control of Zimasco (Pvt) Ltd, a key Chinese government investment.

The Embassy wants the Government of Zimbabwe to protect the investment, in accordance with the Bilateral Investment Protection and Promotion Agreement between China and Zimbabwe, a source said.