ZIMBABWE – Zimbabwean dominant conglomerate Meikles Limited, is seeking to unbundle its agro-business operation, Tanganda Tea Company Limited and separately re-list it on the Zimbabwe Stock Exchange (ZSE).
The relisting of the country’s largest producer, packer and distributor of tea comes 14 years after it voluntarily delisted from the ZSE in 2007, following the merger of its parent company and Kingdom Bank to form Kindom Meikles.
The merger only lasted for barely 3 years as both businesses went separate ways in 2010.
The blue-chip company has indicated that Tanganda’s listing is part of its strategy of reinventing itself and shifting focus to its growing businesses, reports News Day.
“The directors have determined to unbundle from the company and separately list on the Zimbabwe Stock Exchange the company’s agricultural processing business, Tanganda Tea Company Limited.”Company secretary – Thabani Mpofu.
Meikles has roped in advisors to guide it through the process that could help the ZSE end its long listing drought, according to company secretary Thabani Mpofu.
Mpofu said plans were underway to seek shareholder approval on the transaction.
“The board of directors of the company wish to advise shareholders and members of the investing public that the board is engaged in discussions and is considering various proposals which, if implemented, may have a material impact on the value of the company’s shares,” Mpofu said.
“In this regard the directors have determined to unbundle from the company and separately list on the Zimbabwe Stock Exchange the company’s agricultural processing business, Tanganda Tea Company Limited.
“Shareholders and members of the investing public are advised to exercise caution and consult their professional advisors before dealing in the company’s shares until the full details of the transaction(s) are announced or upon withdrawal of this cautionary,” Mpofu added.
Tanganda Tea Company started operations in the 1920s and is not only focused on tea production, but diversified its operations to other agriculture products such as coffee, macadamia nuts and avocados which are export produce. The company also runs a beverage division.
Meikles has expressed optimism for the agriculture business and export crops going forward as the country has received good rains during this 2020/21 season coupled with improved electricity supplies needed for irrigation.
The agricultural firm recently installed a 7.5MW of solar energy to provide power to its estates and factory.
The project costing US$15m was partially funded by the proceeds from the sale of Meikles Hotel to Dubai-based billionaire Ali Albwardy in February 2020.
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