Govt puts Fidelity Printers sale on ice
THE Reserve Bank of Zimbabwe (RBZ) has put its 100% owned Fidelity Printers and Refiners (FPR) off the market amid indications that the country’s sole gold buyer was on the verge of being hit by United States sanctions.
e deal to dispose of FPR was worth US$49 million, which was the value of the 60% stake that the government intended to offload to private players.
e acquisition was offered to seven private entities, including mining giant Kuvimba Mining House, which has been acquiring redundant mines countrywide.
Kuvimba Mining House, which until 2020 did not exist, has emerged to be arguably the country’s largest gold producer after embarking on an acquisition spree of lucrative gold assets around the country, including Shamva Mine, Freda Rebecca, and mines held by Zimbabwe Mining Development Corporation (ZMDC) namely Elvington, Jena, Golden Kopje, and Sandawana.
RBZ governor John Mangudya said FPR was now off the market, adding that a decision was reached where the central bank remains the sole shareholder.
“FPR is not for sale anymore and a decision was reached with the central bank board. RBZ remains the 100% shareholder of FPR and it is not for sale anymore. at is the position,” Mangudya said.
At the time of the proposed deal, the government had selected Kuvimba Mining House, Better Brands, RioZim, Caledonia, Pan Africa Mining, Zimbabwe Miners Federation (ZMF) and Yellow Credit as prospective shareholders.
A well-placed source revealed that the decision to put FPR off the market was made in consultation with President Emmerson Mnangagwa.
“ e President had to put a seal of approval as indications were strongly pointing towards the sanctioning of the country’s sole gold buyer,” the source said.
ere are also indications that the RBZ’s