Zimbabwe: Airzim-Zimairways joins conversations


Merger discussions between Air Zimbabwe (AirZim) and Zimbabwe Airways (ZimAirways) in order to create a unified state aviation company collapsed after the proposed shareholder demanded that the government pay $ 2 million to the government.

Last month, the government announced plans to merger the two airlines as part of a new strategy to revitalize the aviation industry at sea.

However, the sources said that plans had risen in the smoke of lawyer Harare Phillipe Phillips, quoted as director of ZimAirways, writing to the ministry of transport and noting that the merger would not continue unless it paid $ 2 million for shares held by the corrupt carriers.

The nominated shareholder is a virtual or registered owner who holds shares on behalf of the beneficial owner (beneficial owner) in accordance with the trust agreement. It was not clear who was the real owner in this case.

Although the Phillips letter could not be obtained at press pressures because the officials retained a tight cover, senior officials from the Ministry of Transport who transmitted the transaction confirmed the development in the records outside the records. They said that Transport Minister Joel Biggie Matiza, who could not be reached for comment, is now in danger of trying to settle the deal.

"She wrote to the ministry requesting a $ 2 million payment for the shares she claims to be named in the company. So the agreement was actually recalled and that's why the government had to invite private investors to enter," said the official .

Phillips did not want to comment when he contacted businessdigest this week.

"I am not talking to the press about issues in the company, so this conversation ends here. Please do not read me," she said.

A merger is an agreement that brings together two existing companies into one new business. Mergers and acquisitions are usually carried out to expand the company's reach, expand into new segments, or acquire a market share in an effort to generate a shareholder value.

The development brings another type of controversial ownership of ZimAirways, which in April of April claimed that the former Transport Minister Joram Gumbo was 100% owner of the government.

Prior to this, Gumbo said that the airline is a private company owned by the Diaspora-based Zimbabweans. He said that the leasing of Zimbabwe would be Aviation Leasing Company, another state-owned company.

However, there was no evidence to prove his claim. There are no profiles of two companies in the company register.


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