AB Communications takes control of Rainbow Airlines

AB Communications takes control of Rainbow Airlines

Feb 27, 2017: Media group AB Communications (AB) could emerge with full control of Zimbabwe's newly licensed Rainbow Airlines amid disclosures AB has been given the right of first refusal to snap up the 30 per cent stake being held by its partners in the company.

AB Communications Chief operating office and Rainbow Airlines project manager Gilbert Muponda.

According to media reports, AB invested into Rainbow Airlines in exchange for a 50 per cent stake in the company, but the shareholding was to later increase to 70 per cent after putting in a total of about US$1.2 million to meet capital requirements. The remaining 30 per cent stake, though contested from as far back as July 2016 between previous shareholders, has been offered to AB.

It is understood that Rainbow is currently being run by investment banker Gilbert Muponda of GMRI Capital after his company invested $600,000 into the business on behalf of AB.

As part of the loan agreements, GMRI is holding on to all legal corporate documents of Rainbow Airlines until the US$600 000 is fully repaid. Currently, Muponda is the project manager of Rainbow Airlines and AB chief operating officer.

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