ZIMBABWE – Seed Co International (SCIL), a leading certified seed company operating in over 15 African countries is seeking to merger with its Zimbabwean operations, Seed Co Limited, as it plans to transfer its Zimbabwe Stock Exchange Secondary Listing to the soon to be established Victoria Falls Stock Exchange (VFEX).
The two entities are currently listed separately on the ZSE while SeedCo International is also listed on the Botswana Stock Exchange.
According to SCIL, the move to transfer it shares from ZSE to VFEX has been triggered by the Ministry of Finance and Economic Development of the Republic of Zimbabwe undertaking investigations relating to alleged participation in parallel foreign currency market activities by dual-listed companies in Zimbabwe.
The investigations noted that implied exchange rates were being derived from the comparison of dual listed share prices on the ZSE and other exchanges and such implied rates were believed to be the leading indicators of speculative parallel foreign exchange rates in Zimbabwe.
Even though SCIL was found to have not been involved in activities on the parallel foreign currency market, it has been suspended alongside all the fungible dual-listed shares which were being used by market participants to determine the rate of the local currency.
In a bid to provide a permanent solution to the situation, the ZSE in consultation with the Ministry of Finance and Economic Development, established a subsidiary, the VFEX where dual-listed companies would be allowed to list their shares for trading in foreign currency.
The merger of the two entities which is subject to regulatory approval, is said to make the VFEX secondary listing of Seed Co International Limited competitive and comparable to other Zimbabwean dual-listed counters.
Seed Co International Limited is 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 of maize, wheat, soya bean, barley, sorghum and ground nut seed, among others.