Tag Archives: Press Corporation Plc (PCL)

Business, Malawi

PressCane shareholders agreement resolved

Maravi Post Reporter

BLANTYRE-(MaraviPost)-Press Corporation plc (PCL) and Cane Products Limited (CPL) have announced that they have amicably resolved the longstanding shareholding issues in PressCane Limited which have been litigated in the courts for more than 17 years.

Making the announcement during a press briefing in Blantyre on Monday, PCL Chief Executive Officer Ronald Mangani said the conglomerate is happy that all the issues have been resolved, creating an enabling environment for growing the shareholder value of PressCane Limited.

“As a background to this issue, in 2001, Press Corporation Plc and Cane Products Limited entered into a Joint Venture Agreement (“JVA”) to carry on business through a vehicle which was named and registered as ‘PressCane Limited’. As per the JVA, PCL, and Cane Products, Limited held shares in PressCane Limited in the proportions of 50.1% and 49.9%, respectively.”

“In the middle of the operations of the Company, shareholding disputes arose, and there had been a series of court actions since 2003. The Malawi Supreme Court of Appeal finally delivered its judgment on 15 December 2022, which effectively maintained the status quo as regards shareholding in the JVA. The Supreme Court Judgement further directed the parties to amicably agree on the implementation of the judgment.”

“We are very happy that this long-standing issue has been resolved amicably. There are no other disputes in the courts as regards this issue, and we will now make sure that PressCane Limited continues to perform well and grows its shareholder value,” said Mangani.

Rolf Patel, representing directors and shareholders of Cane Products Limited also expressed delight that the issues around shareholding in PressCane Limited have been resolved amicably.

“We are happy that we are now speaking with one voice and moving forward to drive the profitability of PressCane Limited,” said Patel.

PressCane Limited Board Chairman Paul Guta also hailed the move by the two shareholders saying the decision to resolve the issues amicably demonstrates not only their commitment to the well-being of PressCane but also their unwavering dedication to the broader ideals of cooperation and progress.

“The advantages of this resolution are profound, and they will undoubtedly result in the accelerated growth of PressCane Limited. Our path forward is clear, and we are now better positioned than ever before to execute our strategic objectives and reinforce our vision of becoming a regional leader in the ethanol production industry.”

“As we celebrate this momentous occasion, let us reflect on the power of collaboration, compromise, and commitment to a common purpose. Let this be a testament to the strength of our PressCane family and our shared determination to reach new heights,” said Guta.

PressCane Limited, an ethanol distillery company located in Chikwawa district, began its operations in June 2004. It produces fuel ethanol also known as anhydrous alcohol (AA 99.5% v/v) and industrial alcohol (rectified spirit 95.0 – 97.0% v/v) from sugarcane molasses which are procured from Illovo Sugar Malawi Limited at nearby Nchalo in Chikwawa district.

Business, Technology

PCL offers MK759 million compensation for Solar Plant land at Nkhoma

Maravi Post Reporter

LILONGWE-(MaraviPost)-Conglomerate Press Corporation Plc (PCL) on Thursday offered compensation worth MK759 million to community members of Dete area at Nkhoma in Lilongwe after acquiring about 110 hectares of land to set up a 50 megawatt (mw) solar power plant at an estimated cost of MK53 billion.

Presenting the cheque to the community members at Wanje Primary School, PCL Board Chairman Randson Mwadiwa thanked the community members for providing their land to pave way for the installation of the solar power plant.

Mwadiwa noted that the use of the community’s land for solar power generation is a sacrifice, and said PCL is committed to ensuring that this sacrifice is duly recognized and compensated.

“This compensation is not just a gesture of gratitude; it is a tangible representation of our community’s unity and support for sustainable initiatives. It is essential to acknowledge the contributions and sacrifices made by those who have graciously agreed to provide their land for the establishment of the solar power project.

“As PCL, this ceremony is a heartfelt expression of our gratitude, and a demonstration of our unwavering commitment to responsible land use and environmental stewardship,” said Mwadiwa.

He also said the project, which is expected to be concluded in 2024 with operations starting in 2025, is about building a better Malawi.

“Let us remember that this ceremony is not just about solar panels and energy generation. It is about building a better Malawi , one where we harness the power of the sun to create a sustainable, low-carbon future.

“It is about creating jobs, stimulating economic growth, and ensuring that our community thrives in a changing world,” emphasized Mwadiwa.

Senior Group Village Headman Dete thanked PCL for compensating the community members fairly.

“We have given up our land on our free will because we understand the benefits of installing a solar plant here.

“We know we will benefit in many ways through various jobs that will be created during the construction of the plant and other sustainable benefits of solar power,” said the Village Chief.

PCL secured an approval from the Electricity Supply Corporation of Malawi (ESCOM), to connect to the 132KV busbar at its Nkhoma substation after the implementation of the Malawi-Mozambique 400KV transmission interconnection project.

PCL is a highly diversified conglomerate with interests in various sectors of the Malawi economy, including financial services, telecommunications, energy, property, agriculture and tourism.

Some of its subsidiary companies and associates are National Bank of Malawi (NBM) plc, Puma Energy Malawi Limited, PressCane Limited, Ethanol Company Limited, Telekom Networks Malawi (TNM) plc, Malawi Telecommunications Limited (MTL), Limbe Leaf Tobacco Company Limited, Open Connect Limited, LifeCo Holdings Limited, Macsteel Malawi Limited, Press Properties Limited and Sunbird Tourism plc.

Business

PCL talks about expansion strategy through mergers and acquisitions

Maravi Post Reporter

BLANTYRE-(MaraviPost)-Press Corporation Plc (PCL) says it is working on an expansion strategy through mergers and acquisitions (M&As) and has lined up a number of projects to achieve the objective.

Speaking during the 39th Annual General Meeting in Blantyre on Friday, PCL chairperson Randson Mwadiwa, who reported an MK36.3.1 billion profit after tax in the year ended December 31, 2022, said the group remains committed to achieving strategic priorities while navigating the broader market and economic challenges.

“The group’s current strategy is centered around optimizing existing assets and investing in capacity for the future. It is with this in mind that the group envisages organic growth through expansion projects in ethanol businesses to unlock its performance and sustainable potential,” said Mwadiwa.

Mwadiwa further said PCL has also engaged in portfolio rebalancing to pursue greenfield projects in renewable energy as well as processing and manufacturing.

He also told the shareholders that following the execution of the sale and purchase agreement on People’s Trading Centre (PTC), PCL group completed the exit process from the firm.

He said poor performance coupled with the lack of adequate capital to underwrite the business resulted in a decision to close down PTC.

Commenting on the underperformance of Malawi Telecommunications Limited (MTL) and The Foods Company Limited, Mwadiwa said a decision was made to preserve shareholder value in these entities.

He said for MTL, consolidated its investment in the telecoms sectors through TNM plc and Open Connect Limited.

One of the shareholders Joe Maele commended the PCL board for the changes it has made at the conglomerate and TNM plc, one of PCL’s subsidiaries.

“The change at PCL was much sought after,” he said, referring to the appointment of Ronald Mangani as PCL’s chief executive officer.

Minority Shareholders Association of Listed Companies secretary general Frank Harawa commended PCL’s performance.

“PCL remains a competitive listed firm on the market with a good dividend payout of K29 per share for 2022. We are seeing progress in the company and we believe that there is a future in this company,” said Harawa.

Meanwhile, shareholders at the AGM approved a K3.487 final dividend representing K29 per share. This follows another interim dividend of K842 million paid on October 28, 2022, bringing the total dividend payable for the financial year 2022 to K4.329 billion being K36 per share, which is above the 2021 financial year dividend of K4.122 billion at K34 per share.

PCL is 47 percent owned by Press Trust, 16.29 percent by Old Mutual Life Assurance Company Limited, and 36.13 percent by other shareholders.

Business

PCL invests MK11 bn in ethanol plant upgrade

Maravi Post Reporter

BLANTYRE-(MaraviPost)-Press Corporation plc (PCL), through its subsidiary company PressCane Limited, has invested K11 billion in an ethanol plant that will produce high-quality potable ethanol to be used in the pharmaceutical and beverage industries, with some intended for the export market.

PCL Chief Executive Officer, Ronald Mangani, said in an interview yesterday that the ethanol plant will also have a component of Zero Liquid Discharge (ZLD) capable of producing fertilizer, bio-gas and electricity from the waste of ethanol production.

“We are in the process of upgrading our versatile ethanol plant at PressCane Limited which will enable full utilization of its production capacity of 60,000 litres of ethanol per day.

Mangani

“This can be used for fuel blending and, more importantly, high-quality potable ethanol called ‘pharma-grade’ which can be used in the pharmaceutical and beverages industries, apart from exporting it to bring in the much-needed foreign exchange into the country,” said Mangani.

He explained that the company has made an investment of MK2 billion in the ‘pharma-grade’ potable ethanol production plant, and a further K9 billion in the ZLD plant. 

“The good thing with pharma-grade ethanol is that it is pure, and we are excited to introduce this new product because we are responding to the demands of our customers who desire a better-quality product, especially those that want a product that is capable of use in beverage and pharmaceutical production.”

“We are already in talks with foreign customers to export the product, and this will be good for our country especially now when we are having foreign exchange challenges,” said Mangani.

He also said the ZLD plant will make sure that PressCane is environmentally friendly in terms of its waste disposal as the plant is capable of producing fertilizer, bio-gas and electricity from the waste of ethanol production.

“We are happy that, with the fertilizer that we will be producing from the ZLD plant, we will save some of the forex used to procure fertilizer from outside Malawi,” said Mangani.

He further said under the pharma-grade project, PressCane will bring an additional standalone unit to process hydrous alcohol to produce an additional 30 kilolitres per day (KLPD) of anhydrous alcohol (AA).

“The unit will be capable of improving the produced AA to a quality suitable for both pharmaceutical and beverage applications. 

“This investment will, therefore, increase annual  AA production from the current 13 million liters to 18 million liters. In addition, the company will be capable of producing 7 million liters of potable ethanol in a year,” said Mangani.

Business

Malawi Govt hails Maldeco community project

Maravi Post Reporter

BLANTYRE-(MaraviPost)-Minister of Forestry and Natural Resources Nancy Tembo has hailed The Foods Company Limited (TFCL), a subsidiary of conglomerate Press Corporation Plc (PCL), which markets its products under the brand name of Maldeco for its community transformation initiative dubbed ‘One Village, One Cage’ (OVOC) Initiative.

Speaking in Mangochi during the first fish harvest of the initiative, Tembo said the initiative will transform communities around Maldeco as they will be economically independent.

The initiative is where Maldeco, with support from the United Nations Development Program (UNDP) through its implementing agency the Malawi Innovation Challenge Fund (MICF), is supporting five beach village committees (BVCs) who have each been allocated a fish cage on the lake where they are operating like the way tobacco tenants operate.

Maldeco supplies fingerlings and coordinates feed supplies to the BVCs and when the fish is harvested, Maldeco procures the fish and the cost of the inputs is deducted and the surplus is what the BVCs take away as their income.

The initiative is within the bigger project where Maldeco is coming up with a modern fish processing facility with funding from PCL amounting to K2.6 billion and an additional fund from UNDP amounting to K650 million which Maldeco won as a matching grant.

“The One Village, One Cage initiative is a good model for development which apart from fostering development and transforming the lives of the communities around Maldeco, will also improve co-existence between the company and the communities,” said Tembo.

“I commend the efforts of Maldeco management and staff and your partners for your fruitful efforts in aquaculture development and urge you to continue to invest in this sub-sector.  I am well satisfied and pleased to note that Maldeco will continue to contribute positively to improved food security, nutrition status as well as providing employment opportunities for many Malawians,” added Tembo.

Maldeco General Manager Andrew Santhe said that with the modern processing plant once deployed, the company will be able to process as much as 15 metric tons of fish per day up from the current level of about 5 tons.

“The UNDP funding required Maldeco to involve the community in this project hence the OVOC Initiative which will benefit these five villages who are expected to harvest about 1.5 metric tons of fish from each cage after harvest and they already have a ready market at Maldeco for their fish,” said Santhe.

Chairman of the Beach Village Committee Jordan Kanyerere Junior hailed Maldeco for the initiative saying members of the community around the company are elated.

“We want to thank Maldeco for considering us to be part of the Maldeco Chambo success story. They have trained us in business, leadership and financial management so that we are responsible when we realize our profits from this initiative, we are very grateful,” said Kanyerere Junior.

MICF official Tambulani Chunga said it is the wish of the fund that companies that are successful and accessing the fund should also involve the communities around them in their projects.