- Meikles (parent company) shareholders will vote on the relevant resolutions at an EGM to be held on 18 November 2021
- The total costs associated with the Listing of Tanganda on the ZSE are expected to amount to approximately US$186,100
- The Listing is meant to establish Tanganda as a dedicated stand-alone business attractive to investors, among other benefits
HARARE – Tanganda Tea Company, the largest producer, packer and distributor of tea in Zimbabwe, has set 2 December 2021 as the date for its listing on the Zimbabwe Stock Exchange (ZSE), a development that will complete its unbundling process from parent company, Meikles Limited.
Earlier in April 2021, Meikles announced the intention to unbundle its 100 percent-owned agricultural processing business, Tanganda, marking another major move following the sale of the Meikles Hotel in February 2020 for a reported amount of about US$20 million.
In a statement issued Tuesday, the Company advised that subject to the fulfillment of certain formalities, the ZSE Listings Committee on 11 October 2021 approved the distribution of the Abridged, the full Pre-Listing Statement as well as the Listing of the entire issued share capital of Tanganda.
Meikles shareholders will vote on the relevant resolutions at an EGM to be held on 18 November 2021.
It said the first day of trading will be on December 2nd unless any other changes are made.
According to the pre-listing statement, the principal reasons for the listing are as follows:
- To establish Tanganda as a dedicated stand-alone business attractive to investors and able to pursue business ventures within the value-added diversified agricultural sector in Zimbabwe;
- To enable Tanganda in the future to raise funding with conditions suitable for the type of business it is in;
- To enable Tanganda to report independently to the public and be judged appropriately when compared to similar businesses;
- To unlock shareholder value; and,
- To allow Tanganda customers to assess the Company’s performance and sustainability with a view to securing and entrenching valuable trading relationships.
Tanganda has a diverse portfolio divided into three operating divisions; the Agriculture, the Beverage and the Corporate and Administration Divisions.
The Agriculture Division is based in Chipinge and consists of five estates inter-cropped with tea, coffee, avocados and macadamia nuts. The Division has an active out-grower scheme supporting tea farmers covering about 1,000 hectares of land.
The Beverage Division is focused on creating and developing brands mainly from but not limited to the primary agricultural products and consists of a blending and packaging plant in Mutare with sales and distribution depots in Harare, Bulawayo, Gweru and Mutare. The division’s market is mainly local but has a growing export market into the region. New consumer products and services development is a key focus for the Division.
The Corporate and Administration Division is responsible for administration and support services for the Agriculture and Beverage Divisions.
The Company reported revenue of ZW$2.4 billion for full-year ended 31 March 2021, up from ZW$719.6 million a year earlier in inflation-adjusted terms. Its after-tax profit jumped to ZW$223.2 million in FY21 from ZW$156.8 million reported in FY20.
It boasts an asset base upwards of ZW$5 billion, as of the fiscal year 2021.
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