Zimbabwean businessman Batsirai Matiza has taken control of Argus following the completion of an approximately $8 million debt-financed acquisition and restructuring, according to stakeholders familiar with the transaction.
The transaction was structured through an acquisition vehicle controlled by Matiza, with financing secured from a European institutional lender to refinance Argus’ existing debt and complete the acquisition. The acquisition vehicle subsequently assumed control of Argus, making Matiza the controlling shareholder.
The identity of the European institution could not be disclosed because the parties involved were not authorised to identify the lender publicly.
Existing stakeholders remain involved in the wider structure following the transaction.
Following completion, Matiza has removed the existing board with immediate effect as part of a restructuring of Argus’ governance and investment strategy.
The board changes follow disagreements over the future direction of the group. A central issue was Matiza’s proposal to place Zimbabwe and Zimbabwe-linked investments at the centre of Argus’ investment strategy, a position opposed by some members of the previous board.
The disagreements also reportedly extended to the allocation of corporate resources and executive benefits, including arrangements relating to private-jet use and other senior-management benefits.
A new board and senior leadership team is expected to be constituted over the next month. The incoming structure is expected to comprise more Zimbabwean professionals than international personnel, reflecting the group’s increased focus on Zimbabwe.
The new leadership is expected to increase Argus’ focus on opportunities in Zimbabwe while maintaining international financial relationships and pursuing selected investments outside the country.
