- Border Timbers Shareholders approve Cicada Plantations' acquisition offer
- With shareholder approval secured, Border Timbers Limited moves closer to potentially becoming a subsidiary of Cicada Plantations Zimbabwe (Private) Limited
- Share Swap Ratified
Harare- Border Timbers Limited shareholders have approved an acquisition offer put forth by Cicada Plantations Zimbabwe (Private) Limited according to a circular released by the company today following the Extraordinary General Meeting (EGM) held on Monday, 28 August 2023.
With shareholder approval secured, Border Timbers Limited moves closer to potentially becoming a subsidiary of Cicada Plantations Zimbabwe (Private) Limited as the acquisition process advances according to revised timelines.
“Announcement of the results of voting at the Extraordinary General Meeting of shareholders of Border Timbers Limited (“the Company”) held at 10:00 hrs on Monday, 28 August 2023 relating to and seeking approvals for the terms and conditions of an offer to the Border Timbers Limited shareholders for the acquisition of the entire issued ordinary shares of Border Timbers Limited by Cicada Plantations Zimbabwe (Private) Limited, and resultant revised indicative dates and times,” said the company in a circular.
During the EGM, shareholders were called upon to vote on the terms and conditions of the proposed acquisition offer, which aimed to secure the entirety of the issued ordinary shares of Border Timbers Limited. The outcome of the vote revealed an unequivocal endorsement of the offer by the company's shareholders.
The acquisition offer, presented by Cicada Plantations Zimbabwe (Private) Limited, involves a share swap arrangement. For every 1.1079 Border Timbers Limited ordinary shares held, shareholders will receive 1 new ordinary share of Cicada Plantations Zimbabwe (Private) Limited. This share swap ratio will result in the issuance of approximately 38,758,568 new shares of Cicada Plantations Zimbabwe (Private) Limited to the existing shareholders of Border Timbers Limited.
By accepting the offer, Border Timbers Limited shareholders who participate will become shareholders in Cicada Plantations Zimbabwe (Private) Limited. This transformative transaction may also entail Border Timbers Limited becoming a subsidiary of Cicada Plantations Zimbabwe (Private) Limited. The Circular provided to shareholders prior to the EGM detailed the proposed transaction and its potential implications.
The shareholders' approval of the acquisition offer was accompanied by an additional resolution, granting the directors of Border Timbers Limited the authority to take all necessary actions to give effect to the approved resolutions. This authorisation ensures a seamless transition and facilitates the smooth implementation of the acquisition process.
In conjunction with the announcement of the voting results, Border Timbers Limited released revised important dates and times related to the transaction. These updates provide shareholders and stakeholders with a clear timeline to follow as the acquisition progresses towards completion.
The revised schedule includes the EGM held on Monday, 28 August 2023, which marked the crucial moment of shareholder approval. The publication of the Border Timbers Limited EGM resolution results is slated for Wednesday, 30 August 2023. The primary offer is set to open on Monday, 4 September 2023, and will close on Monday, 25 September 2023. Shareholders can expect the release of the primary offer results on Wednesday, 27 September 2023. Finally, the termination of Border Timbers Limited's listing on the Zimbabwe Stock Exchange (ZSE) is scheduled for Friday, 3 November 2023.
If the transaction reaches completion, it will reshape the future course and corporate structure of Border Timbers Limited, potentially positioning it as a subsidiary of Cicada Plantations Zimbabwe (Private) Limited.
As the acquisition moves forward, it is poised to have a profound impact on the companies involved and the broader industry landscape.
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