Brikor buys 40 percent stake in Zingaro Holdings
Zingaro’s growth in revenue may prompt Brikor to buy the remaining shares by 2023.
Brick supplier and manufacturer Brikor has until April 2023 to decide if it wants to go and buy up the remaining 60 percent of Zingaro Holdings.
This week, Brikor bought R50 million worth of shares in the road and transportation services company, with the option to buy up the remaining 60 percent at R90 million in exchange for Brikor shares, at an issue price of 15 cents per share.
Brikor CEO Garnett Parkin said Zingaro’s revenue growth is expected to stabilise at an increase of between eight and nine percent annually for the foreseeable future, based on its growth trajectory since 2013. Zingaro Holdings’ most impressive balance sheet was produced between 2016 and 2017 when earnings jumped to 111 percent. In 2018 growth was 42.5 percent.
“There are also many synergies between Brikor and Zingaro Holdings, and the Brikor board of directors believes it will ensure additional income and profit opportunities for the combined group,” said Garnett.
Zingaro Holdings owns an impressive vehicle fleet, primarily operating short to medium distance routes in Gauteng, North West, Mpumalanga, and Limpopo. The company also has operations in the mining industry, specialising in loading, hauling, and stockpile management. Its specialised vehicle fleet includes tippers, low-bed, flat-deck trucks, and various plant and mining equipment.