HARARE – Zimbabwe’s largest seed maker SeedCo Limited’s partial unbundling comes to fruition tomorrow (October 5) with the primary listing of spin-off Seed-Co International on the Botswana Stock Exchange (BSE).
Seed-Co International will also get a secondary listing on the Zimbabwe Stock Exchange (ZSE), where the parent company already trades.
According to a circular issued to shareholders, the spin-off’s will list on the BSE by intoruction of its entire issued share capital comprising 379 331 127 ordinary shares. And its secondary listing on the ZSE will by the listing of issued shares of the company comprising 379 331 127 ordinary shares of no par value on the ZSE.
The giant seed producer says there could be limited cross movement of Seed-Co International ordinary shares particularly from the ZSE to the BSE.
“”Whilst some restrictions will apply in respect of the movement of Seed-Co International ordinary shares by Zimbabwean resident shareholders from the ZSE to the BSE, Seed-Co International ordinary shares shall move freely from the BSE to the ZSE.
“The restrictions on the movement of Seed-Co International ordinary shares from the ZSE to the BSE shall be monitored by the Zimbabwean Transfer Secretaries in liaison with the stock brokers in Zimbabwe.
“Accordingly, Zimbabwean resident shareholders are advised to consult their stock brokers and the company’s Zimbabwe transfer secretaries for permissibility and conditions each time they consider moving their Seed-Co International shares from the ZSE for trading on the BSE,” said the group.
Meanwhile, the unbundling and partial listing will result in the group managing to raise $19, 22 million to partially fund its expansion projects.
Following the process SeedCo Limited will retain a 26 percent stake in SeedCo International.
In an earlier pre-listing statement, the group said the capital raise process will be three-prong.
It will entail the following: partially unbundling Seed Co International Limited out of the group by way of a pro rata dividend in specie distribution of 71 percent of SeedCo International Limited represented by 241,313,440 ordinary shares which are part of the total shares held by Seed Co Limited; the raising of approximately $9, 2 million (3, 6 percent of current market capitalisation of $532 million) hard currency through the placement of 37,920,648 Seed Co International Limited ordinary shares with Vilmorin & Cie at a subscription price of $0, 5069 per share; and the separate primary and secondary listing of SeedCo International Limited on the BSE and the ZSE.
Seed-Co International has expansion projects that require immediate funding amounting to approximately $31 million.