eBusiness Weekly
BH24 Reporter
HARARE – Zimbabwe Stock Exchange-listed seed producer SeedCo says it had been granted exchange control authority by the Reserve Bank of Zimbabwe (RBZ) to partially unbundle its external operations.
The proposed unbundling will see SeedCo capital raise through a dual listing.
SeedCo is one of the largest seed producers on the continent, operating in countries in the region.
In June last year, the company’s board approved the proposal to partially unbundle, list external operations of group on regional stock exchange
“The company has now been granted Exchange Control Authority to partially unbundle external operations, by way of a dividend-in-specie, raise capital and dual-list the external operations on the Botswana Stock Exchange (Primary Listing) and on the Zimbabwe Stock Exchange (Secondary Listing),” said company secretary John Matorofa.
The RBZ is an Exchange Control Authority in relation to all the provisions of the 1996 Exchange Control Regulations, with the exception of section 43, in terms of the Exchange Control (Exchange Control Authority) Notice, Statutory Instrument 145/97.
The Exchange Act confers powers and imposes duties and restrictions in relation to gold, currency, securities, exchange transactions, payments and debts, imports, exports, transfer and settlement of property.
Mr Matorofa said a circular and pre-listing statements, with details of the transactions in accordance with applicable capital market regulations, will be distributed in due course.”
SeedCo’s revenue for the half year to September 30, 2017 jumped 45 percent to $36, 1 million from $24, 8 million in the same period prior year on early maize seed sales and improved winter cereal seed sales.
The seed manufacturer subsequently narrowed loss after tax for the period to $2 from $9, 3 million in the same period last year on the back of an increase in sales and a decline in finance costs.
