Private financing sector arm Proparco issues US$25m loan to Seed Co to bolster food security

ZIMBABWE – Listed seed producing giant, Seed Co has received a US$25 million loan financing from French development financial institution Proparco, to strengthens food security in the region. The seven-year support is divided into two tranches, each for US$ 12.5m, with a 7-year maturity. According to Proparco, it will be channelled towards research and international expansion via a loan to Seedco Zambia. Secondly it will include the construction of a corn dryer at its Zimbabwe operations, which will increase the production capacity, double farmers’ harvests and do more to address…

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Seed Co International inches closer to full acquisition of Zimbabwean subsidiary

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…

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Seed Co International acquires controlling stake in Zimbabwean unit

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…

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Seed Co highlights there will be no board changes following its merger with Zimbabwean unit

ZIMBABWE – Regional seed producer Seed-Co International Limited (SCIL) has indicated that there will be no changes to the structure of its board once it completes the absorption of the Zimbabwean subsidiary, Seed Co Limited (SCL). In a move that marks a complete turnaround from the group’s 2018 unbundling, the Botswana Stock Exchange-listed company which is secondarily listed on the US dollar denominated Victoria Falls Stock Exchange (VFEX) will be merged with the Zimbabwean entity. It means SCL, which is listed on the Zimbabwe Stock Exchange (ZSE) will have to…

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Seed Co International Limited shareholders give nod to acquisition of Zimbabwean unit

ZIMBABWE – Regional seed producer, Seed Co International Limited (SCIL) has received the go ahead from its shareholders to acquire the entire shares of its Zimbabwean unit, Seed Co Limited (SCL). After passing of the transaction, SCIL advised the investing public and shareholders that the company was now proceeding to tender the open market offer to acquire SCL’s entire issued ordinary shares through an announcement or offer circular to be issued to SCL in accordance with the Zimbabwe Stock Exchange requirements. “Pending the successful conclusion of the steps outlined above…

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Seed Co International reports 57% rise in revenue on back of increased sales volumes

AFRICA – Regional seed producer, Seed Co International Limited has reported a 57.3% rise in revenue for the half year period ended September 30, 2020 to US$27.9 million from US$17.7 million achieved in the prior year. The increase in revenue according to the company was largely driven by early seed deliveries to customers in Malawi and Zambia combined with strong demand in Nigeria. Also exports from Kenya to Rwanda drove the increase in both maize seed sales volumes which rose by 56.6% during the period under review. A combination of…

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Seed Co International projects triple digit growth in half year profit

ZIMBABWE – Seed Co International Limited (SCIL), a leading certified seed company in Africa expects to make a turn round of its earning in the interim period for the six months ended September 2020, attaining approximately 275% to 295% rise in profit. According to reports by The Herald, the firm projects its profit after tax to between US$4.5 million and US$4.8 million a recovery from the loss before tax of the prior period which amounted to US$1.6 million. The rise in profit is spearhead by the early maize seed sales,…

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Seed Co International becomes first company to list on Zimbabwe’s new bourse

ZIMBABWE – Seed Co International (SCIL), a leading certified seed company operating in over 15 African countries has announced the migration of its secondary listing from the Zimbabwe Stock Exchange (ZSE) to the newly formed Victoria Falls Stock Exchange (VFEX). Becoming the first company to be listed on Zimbabwe’s new foreign currency denominated bourse, the fungibility of SCIL’s share remain suspended. The company revealed in a statement that it is waiting for further announcement regarding trading modalities between the VFEX and stock exchange outside Zimbabwe, including the Botswana Stock Exchange…

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SeedCo Limited reports reduction in profits coupled with low sales volume in the nine months ended December 2019

ZIMBABWE – Zimbabwe’s largest seed producer, Seed Co Limited has reported a 24% reduction in its sales volumes for the nine months ended December 31, 2019, reflecting Zimbabwe’s ongoing economic challenges and unfavourable weather conditions. The reduction in sales volumes saw the group register a reduced profit of ZWL309 million for the period, down from US$23.2 million in the comparative 2018 period, a decrease of nearly 25.5%. “The reduction in sales volumes, in both the third quarter and the nine months to December 31, 2019, was mainly due to low…

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SeedCo Limited reports half year loss coupled with low sales volume

ZIMBABWE – Zimbabwe’s largest seed producer, Seed Co Limited has reported a loss of US$2.5 million for the half year period to September 30, 2019, from US$1.5 million recorded during the same period in the prior year on the back of decreased exchange gains and increased finance costs. Traditionally, the first half is a cost accumulation period as sales begin during the second half of the year when farmers scramble for seed in time for the farming season as well as the onset of rains, reports the Herald. Loss before…

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