ZIMBABWE – Listed seed producing giant, SeedCo International Limited (SCIL) has finally acquired 78% stake in its local unit SeedCo Limited (SCL) enabling the company to implement its exit from the Zimbabwe Stock Exchange (ZSE).
Recently, 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 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 the Zimbabwe dollar will not protect value for shareholders.
In the latest update SCIL company secretary, Eric Kalaote said the majority of shareholders had accepted the primary offer constituting a control block extended by the company, reports New Zimbabwe.
“Following the subsequent publication of the secondary offer, the board of SCIL wishes to advise shareholders and the investing public that SCL shareholders constituting 78.08% of the issued share capital have now accepted the offer and surrendered their shares as of Tuesday 2 February 2021,” he said.
In accordance with the ZSE listings requirements, SCIL will proceed to cause SCL to apply for voluntary delisting from the ZSE upon the closure of the secondary offer on 3 March 2021 and procurement of regulatory approvals.
“Consequently, once delisted, any remaining SCL shareholders will not be able to trade their shares freely in the absence of a public market platform and an easily determinable reference price.
“Shareholders and the investing public are reminded of SCIL’s strategic plan to achieve full consolidation of SCL on successful completion of the acquisition transaction,” said Kalaote.
SCIL will invoke the provisions of the Companies and Other Business Entities Act to acquire any remaining shares after the closing date of the secondary offer.
The primary offer which enabled SCIL to acquire the controlling block of 35% in its subsidiary was concluded last month based on a share-swap of 1 SCIL share for every 0.98 shares held in SCL.
The secondary offer is also undertaken on the same terms as those by which the controlling block was secured.
The merger, which is estimated at around $5.1 billion, will see SCIL acquiring up to 247, 169, 845 SCL shares.
Seed Co International Limited is one of the leading certified seed companies authorized to market seed varieties developed by itself, government and other associated seed breeders in its markets.
From years of intensive investment in R&D, the company is involved in the breeding, multiplication and distribution of mainly hybrid seed varieties.
It is primarily listed on the Botswana Stock Exchange, with a secondary listing on Zimbabwe’s Victoria Falls Stock Exchange.
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