Pioneer awaits regulatory approval
Tuesday, 17 Apr 2012
Sources at the Competition and Tariff Commission (CTC) said the transaction had been approved, but was yet to get government approvals.
"We are done with Pioneer as CTC, but I donít know what the issues are with the Indigenisation ministry," the source said.
Pioneer shareholders approved the purchase of assets by Pioneer Corporation Africa at an extraordinary general meeting.
"We now await approval of the transaction from the relevant authorities," the companyís chairperson Patrick Chingoka said in a statement accompanying its financial results for the year-ended December 31.
Pioneerís chief executive Albert Ushe said the company was engaging one of the regulatory authorities, but refused to give additional details.
"We are in the process of submitting the requirements of the authority and there is progress," Ushe said.
During the period under review, Pioneer posted an operating profit of $236 000 compared to a loss of
$1,58 million in 2010 on the back of solid performances by its foreign subsidiaries.
The companyís foreign subsidiaries include Pioneer Transport South Africa, Pioneer Clan Botswana and Mavambo Coaches South Africa.
Chingoka said the recapitalisation drive, complemented by an aggressive marketing drive in both local and foreign markets, contributed to the positive turnaround.
"The performance by foreign subsidiaries improved mainly due to aggressive marketing strategies that resulted in lucrative new contracts being secured and hence increased revenue.
"New trucks injected into the fleet had a positive impact on performance," Chingoka said.
He, however, said local subsidiaries did not perform to expectation due to the challenging operating environment.
"Growth in revenues was recorded, though low," he said.
"Occupancy levels for passenger division improved, though below expectation due to low disposable income of travelling passengers."
The company recorded an increase in revenue of 16% to $26,4 million compared to $22,7 million last year and Chingoka said the group was optimistic performance in 2012 will continue to improve significantly.
"While local businesses continue to be negatively impacted by depressed liquidity conditions on the market, positive economic growth is projected.
"The new assets injected into the fleet during the year and more to be injected, will enhance the groupís ability to compete effectively on the market and hence continued growth," he said.