eBusiness Weekly
Tawanda Musarurwa
Regional seed producer, Seed Co International (SCIL), says it has acquired a 35 percent controlling block in Zimbabwean unit, Seed Co Limited (SCL) following the primary offer that was concluded last week.
But a secondary offering is now in play — which is expected to close on March 2 — as the group intends to consolidate SCL into the wider group.
The Botswana Stock Exchange-listed Seed-Co International, (which is secondarily listed on the United States dollar denominated Victoria Falls Stock Exchange — VFEX), will be merged with the Zimbabwean entity, which will come off the Zimbabwe Stock Exchange (ZSE).
“The boards of Seed Co International Limited and Seed Co Limited wish to advise their shareholders and the investing public that SCIL has secured 35 percent of the issued shares in SCL in acceptances of its primary offer (control block).
“The control block was secured through acceptances pursuant to the primary offer, based on a share-swap of 1 SCIL share for every 0,98 shares held in SCL, published in a circular to SCL shareholders dated 13 January 2021 in terms of the Companies and Other Business Entities Act of Zimbabwe [Chapter 24:31] (COBE) and the ZSE listings requirements,” announced SCIL this week.
The completion of the merger, estimated at around $5,1 billion, will see SCIL acquiring up to 247,169,845 SCL shares (constituting SCL’s entire issued share capital) through an open market offer to be settled through the issuance of new SCIL shares on the basis of 1 SCIL ordinary share for every 0,98 SCL ordinary shares held.
Added SCIL: “In accordance with the COBE and the ZSE Listings Requirements, SCIL hereby notifies the remaining shareholders in SCL of its intention to acquire their 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.
“The information on SCIL and the full details of the terms of the secondary offer are outlined in the same Circular dated January 13, 2021.”
According to the group, the secondary offer will close on Tuesday March 2, 2021.
And following the conclusion of that secondary offer, SCIL expects the termination of listing of SCL shares on the ZSE by March 31.
Management of the regional seed producer has expressly said the integration of the Zimbabwean operations will make SCIL’s profile on the VFEX comparable to its dual-listed counterparts whose make up comprise both international and Zimbabwean operations.
