THE delisting of pan-African seed producer, Seed Co Limited (SCL), from the Zimbabwe Stock Exchange (ZSE) took a major step towards conclusion this week after the firm notified its last trading was Tuesday.
The move follows a merger that was recently approved by shareholders holding a combined 78%.
Seed Co operates through the ZSE-listed SCL and the Botswana domiciled Seed Co International Limited (SCIL), which has been aggressively expanding since launching two decades ago.
But as part of a consolidation plan that directors hope will unlock shareholder value, the group’s assets are being merged, with the local unit exiting the ZSE.
The combined assets will be listed on the foreign currency denominated Victoria Falls Stock Exchange (VFEX), where SCIL is already quoted.
“Reference is made to the Seed Co International Limited-Seed Co Limited transaction timetable and the last press announcement of the offer results on February 3, 2021, which advised that 78,08% of Seed Co Limited shareholders had accepted the offer by tendering irrevocable and unconditional Forms of acceptance, surrender and transfer,” SeedCo group company secretary Terrence Chimanya wrote to ZSE head legal and compliance Lyndon Nkomo, in a letter dated February 24, 2021.
“This letter serves to confirm that February 23, 2021 was the last day to trade in Seed Co Limited shares and that the secondary offer is closing on March 2, 2021 to allow all trades to be settled and transferred. Please find enclosed for your approval the last market announcement we wish to publish on Thursday February 25, 2021 advising of latest results of the offer. We look forward to your usual prompt feedback in this regard.”
Chimanya also told Nkomo that following the secondary offer on March 2, 2021, the company would make another announcement of the offer results and formally request the termination of the listing of Seed Co Limited in line with the disclosures made in the transaction documents pursuant to the ZSE listing requirements.
In a market announcement published yesterday, Seed Co revealed that 84% of its shareholders approved the merger and delisting from the ZSE.
