Sinokubonga Nkala
Sikhulekelani Moyo, [email protected]
TANGANDA Tea Company, a horticulture giant listed on the Zimbabwe Stock Exchange (ZSE), has announced a shift in its plans to migrate to the Victoria Falls Stock Exchange (VFEX).
This development comes after the board of directors reconsidered its earlier recommendations, as communicated in cautionary statements released in October and last month.
Initially, Tanganda announced its intent to transition to the United States dollar-denominated VFEX, with plans to issue a renounceable rights offer aimed at raising US$7,7 million.
However, in a new cautionary statement released on Tuesday, Tanganda company secretary, Ms Sharon Kodzanai, revealed that the board has proposed an alternative approach to enhance the company’s capital structure and shareholder offerings.
“Shareholders of Tanganda Tea Company Limited and the investing public are advised to take note that directors no longer recommend the migration of Tanganda’s listing to VFEX. Instead, they propose the creation of a new class of shares to be known as Class A ordinary shares, which will be subsequently listed on the VFEX as a secondary listing,” she said.
Ms Kodzanai added that following the issuance, listing and allotment of the new Class A ordinary shares, a renounceable rights offer will be conducted to raise US$8 million.
Existing shareholders will have the opportunity to purchase these shares in proportion to their current holdings.
A renounceable rights offer allows shareholders to purchase additional company shares at a discounted price, with the option to sell the rights to another investor.
Ms Kodzanai said these transactions, if successful, are expected to have a material impact on the company’s share price.
“Accordingly, shareholders are advised to exercise caution when dealing in the company’s shares,” she said.
“Kodzanai said further details regarding these plans will be communicated in a shareholder circular being finalised.
Tanganda, the largest producer, packer, and distributor of tea in Zimbabwe, re-listed on the ZSE in 2021 after over a decade of absence.
Over the years, the company has diversified its operations, expanding into macadamia and avocado farming, coffee production, and spring water bottling, making it a formidable player in agricultural exports and an attractive investment option. — @SikhulekelaniM1.
