GOVERNMENT has completed the process to take over drug manufacturer, CAPS Pharmaceuticals and Health Care (Pvt) Limited, two entities which used to be part of CAPS Holdings Group, the Financial Gazette’s Companies & Markets (C&M) has been established.
Units under Health Care include QV Pharmacies and St Anne’s Hospital.
CAPS International Limited, whose mandate is to distribute drugs in the region, has not be acquired by government. Geddes Limited, which falls under CAPS International, is also not part of the acquisition.
CAPS Holdings’ majority shareholder, Fred Mtandah, declined to reveal the terms of the agreement but confirmed that the deal had gone through.
Mtandah said: “Yes, the transaction has now been completed. Government put in writing something which I accepted and signed. But I can not disclose the terms of the agreement.”
It was not immediately clear how much had been paid by government for the shareholding, and if the terms entailed cash payment by government.
Abigail Shonhiwa, the permanent secretary in the Ministry of Industry and Commerce who heads the boards of the acquired entities, said: “There is not much I can share with you. You better talk to the office of the Reserve Bank of Zimbabwe. They are handling the payment issues.”
The governor of the central bank, John Mangudya, could not be contacted for comment.
Two months ago, Industry and Commerce Minister, Mike Bimha, indicated that the deal was in limbo, accusing Mtandah of continuously coming up with fresh demands which he claimed government was finding difficult to satisfy.
But Mtandah last week vigorously denied the minister’s claims. He revealed that the deal almost suffered due to bickering within government.