By Alois Vinga
LISTED seed manufacturing giant, SeedCo International Limited (SCIL) has acquired a 35% stake in its local unit, SeedCo Limited in line with new plans to buy back all shares listed on the Zimbabwe Stock Exchange (ZSE).
Early this month, SCIL said the rationale for the offer was premised on a strategic response to the changes in the status of its secondary listing in Zimbabwe brought about by policy initiatives introduced by the government.
SCIL contends that transferring only one of the entities, SCIL, to the Victoria Falls-based VFEX trading only in US$ while leaving SCL on the ZSE trading in Zim$ will not protect value for shareholders.
“SCIL wish to advise their shareholders and the investing public that SCIL has secured 35% of the issued shares in SCL in acceptances of its primary offer giving the control block secured through acceptances pursuant to the primary offer, based on a share-swap,” said Eric Kalaote, the SCIL company secretary.
Under the arrangement one SCIL share was swapped for every 0.98 shares held in SCL.
“In accordance with the regulatory requirements, SCIL hereby notifies the remaining shareholders in SCL of its intention to acquire their shares (‘the remaining shares”). The acquisition of the remaining shares shall be done through a secondary offer on the same terms as those by which the control block was secured,” said Kalaote.
The secondary offer commenced on January 27 and will close on Tuesday 2 March 2021.
Added Kalaote: “Shareholders and the investing public are advised that SCIL plans to delist and achieve full consolidation of SCL on successful completion of the acquisition transaction.
“Accordingly, pending completion of the secondary offer and obtaining of all regulatory approvals, shareholders and the investing public are advised to continue exercising caution when dealing in the securities of both SCIL and SCL.”