ZIMBABWE – Regional seed producer, Seed Co International (SCIL), has acquired a 35% stake in its Zimbabwean unit, Seed Co Limited in line with its plans to buy back all shares listed on the Zimbabwe Stock Exchange (ZSE).
The acquisition of the controlling block was in pursuant to a primary offer based on a share-swap of 1 SCIL share for every 0.98 shares held in SCL.
The remaining stake is being acquired through a secondary offer on the same terms as those by which the controlling block was secured, which is expected to close on March 2, indicates SCIL.
“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 Eric Kalaote, the SCIL company secretary.
The Botswana Stock Exchange-listed company which is secondarily listed on the US dollar-denominated Victoria Falls Stock Exchange (VFEX) seeks to merge with its local unit in response to the changes in the status of its secondary listing from the Zimbabwe Stock Exchange (ZSE), brought about by policy initiatives introduced by the government.
SCIL contends that solely transferring to VFEX trading while leaving SCL on the ZSE trading in Zim$ will not protect value for shareholders.
The merger, which is estimated at around $5.1 billion, will see SCIL acquiring up to 247, 169, 845 SCL shares.
Following the conclusion of the secondary offer, SCIL expects the termination of listing of SCL shares on the ZSE by March 31.
The leading producer of certified seeds in the region has indicated that there will be no changes to the structure of its board once it completes the absorption of the Zimbabwean subsidiary.
As SCIL seeks to merger with SCL, the company is targeting 10 percent share of the South African market, which will be achieved through its joint venture project with Limagrain and K2.
Since mid-last year, Seed Co’s operations in South Africa and eSwatini became part of the enlarged business entity, Limagrain Zaad SA, created from the merger of K2, Link Seed and Seed Co operations in these markets.
The company has revealed that it will take up a 20 percent stake in the joint venture project.
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