Wednesday, 3 March 2021: Manufacturer and supplier of bricks, Brikor Limited (JSE: BIK) has acquired a 40% shareholding to the value of R50 million in Zingaro Holdings (Pty) Ltd, a business that provides multi-product road transportation services for bulk commodities.
Zingaro Holdings primarily operates in South Africa and mainly services short to medium distance routes in Gauteng, North West, Mpumalanga and Limpopo, with a fleet of more than 100 specialised vehicles.
“Zingaro Holdings is well-positioned with substantial market share. There are also many synergies between Brikor and Zingaro Holdings and the Brikor board of directors believe it will ensure additional income and profit opportunities for the combined group,” says Garnett Parkin, CEO of Brikor.
Zingaro Holdings also specialises in providing turnkey services for mine activities, such as loading, hauling, stockpile management and haul road maintenance by using a wide range of specialised trucks and earth-moving equipment. Its specialised vehicles include tipper, low-bed and flat-deck trucks as well as various plant and mining equipment.
“The company has shown exceptional growth of around 20% per annum since 2013, with significant growth in revenue of 111% for the financial years 2016 to 2017. During the following financial year, revenue increased by 42.5%,” Parkin says.
According to Parkin revenue growth is expected to stabilise at an increase of between 8% and 9% annually for the foreseeable future.
Brikor also has an option until 30 April 2023 to buy the remaining 60% shareholding in Zingaro Holdings for R90 million in exchange for Brikor shares at an issue price of 15 cents per Brikor share.