- Zimplow will acquire 100% ownership of the Target Companies and the Target Property
- Scanlink (Pvt) Limited is the sole distributor of Scania products in Zimbabwe
- Shareholders of the Target Companies and EPP will receive a total of 106,199,706 Zimplow ordinary shares
Harare – Farming equipment manufacturer Zimplow Limited (Zimplow) is seeking to expand its property portfolio and other business operations in a move expected to improve market positioning and culminate into the creation of a robust balance.
The proposed transaction which follows a meeting by the Board of Directors held on 26 June 2020, involves the potential acquisition of Stand 30001 Dagenham Road, Willowvale Township, Harare, herein referred to as the Target Property as well as Scanlink, Tredcor Zimbabwe and Birmingham Investments herein referred to as the Target Companies.
In a circular to shareholders released through the ZSE on Thursday, the Company said, “Zimplow is proposing to put forward an offer to acquire 100% of the Target Companies’ issued share capital as well as to acquire the Target Property.
“Should the offer become binding, Zimplow will acquire 100% ownership of the Target Companies and the Target Property. As a consequence, Scanlink, Tredcor Zimbabwe and Birmingham Investments will become subsidiaries of Zimplow while the target property, Stand 30001 Dagenham Road, Willowvale Township, Harare, will be wholly owned by Zimplow.
Scanlink (Pvt) Limited is the sole distributor of Scania products in Zimbabwe. Tredcor which trades as Trentyre is the exclusive distributor of Goodyear brand of tyres in the country while Birmingham Investments is a property holding company.
“Upon the Acquisition, the Shareholders of the Target Companies and EPP will receive a total of 106,199,706 Zimplow ordinary shares. The Offer is based on the relative earnings and valuation ratios of Zimplow, Scanlink, Tredcor Zimbabwe and Birmingham Investments as well as the valuation of the target property, as of the valuation date of 26 June 2020 being the date the initial offer was made to the shareholders of the Target Companies and to EPP,” the Company added.
Other benefits of the proposed transaction include diversification of product and service offering, unlocking of cost savings for Zimplow, Scanlink and Tredcor as well as allow Zimplow to gain full control of the target companies’ business lines.
Zimplow Limited, incorporated in 1939, is the largest manufacturer and distributor of farming implements in sub-Saharan Africa and operates through four divisions, namely, Barzem, Mealie Brand, CT Bolts and Farmec.
The company also manufactures and distributes metal fasteners for the mining, construction and agricultural industries.
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