HomeBusiness DigestBAT downsizes

BAT downsizes

Ngoni Chanakira

BRITISH American Tobacco (BAT) is downsizing and demerging its entire shareholding in Valtobac Ltd Societé Anonyme, registered in Luxembourg.

, Arial, Helvetica, sans-serif”>Valtobac is also the registered holder of 37,97% of the share capital in BAT Zambia, listed on the Zambia Stock Exchange, and the subdivision of the company’s ordinary shares.

Company secretary Simukai Munjanganja said BAT Zambia needed to be offloaded because it was performing extremely poorly, thus affecting company profits in Zimbabwe.

He said the move would boost BAT Zimbabwe’s investment opportunities and unlock shareholder value.

BAT shares were trading at $5 500 on Wednesday up from $5 000 on Tuesday when the news made its way onto the market.

Munjanganja said BAT was therefore calling for an extraordinary general meeting to be held on October 16 to ask shareholders to approve the deal.

The proposed demerger would be by a Distribution in Specie of its shareholding in Valtobac to the company’s shareholders registered as such on Friday October 17, on which date the company’s register would be closed.

He said directors would also seek the go-ahead in a special resolution to alter the company’s articles of association.

The shares to be acquired under the resolution would be ordinary shares in the company and the maximum number of shares, which could be acquired under this resolution, would be 10% of the ordinary shares in issue prior to the date of the resolution.

The company said it would seek approval that the maximum and minimum prices respectively at which such ordinary shares could be acquired should be 20% above and 25% below the closing traded price.

BAT said failing this the mid price, at which such ordinary shares are traded on the Zimbabwe Stock Exchange, as determined over the five business days on which the share has traded immediately preceding the date of purchase of such ordinary shares by the company would apply.

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