- Marks complete turnaround from 2018 unbundling
- Proposes to secure remaining shares in SCL
- The merger necessitated with changes in listing dynamics
Harare – Regional seed producer Seed Co International (SCIL) has successfully obtained control of the Zimbabwean unit, Seed Co Limited (SCL) after securing an additional 35% of the issued shares in SCL in acceptance of its Primary Offer.
The control block was secured through acceptances pursuant to the Primary Offer, based on a share-swap of 1 (one) SCIL share for every 0.98 shares held in SCL, published in a Circular to SCL shareholders dated 13 January 2021.
In a previous circular, the Botswana Stock Exchange-listed SCIL (which is secondarily listed on the US dollar-denominated Victoria Falls Stock Exchange (VFEX), said the merger with the local unit is expected to strengthen the profile of SCIL following its Secondary listing’s migration from the Zimbabwe Stock Exchange (ZSE) to VFEX.
In a joint statement the companies said, “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 remaining 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.”
SCIL plans to delist and achieve full consolidation of Seed Co Limited on successful completion of the acquisition transaction.
“Accordingly, pending completion of the Secondary Offer and obtaining of all regulatory approvals, Shareholders and the investing public are advised to continue exercising caution when dealing in the securities of both SCIL and SCL,” reads the statement.
With this move, the group completes a turnaround from 2018 unbundling which saw the seed producers operate as stand-alone listed entities on the local bourse, a move which was meant to “unlock shareholder value and position the continental operations for growth.”
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