HomeBusiness DigestSuspended TZI readies for ZSE rebound

Suspended TZI readies for ZSE rebound

Roadwin Chirara

SUSPENDED horticultural concern TZI has begun a regrouping exercise of its assets as part of efforts to re-list on the Zimbabwe Stock Exchange (ZSE).

ana, Arial, Helvetica, sans-serif”>The company will seek shareholder approval for the implementation of a recovery plan at its emergency general meeting (EGM) scheduled for December 30.

As part of the recovery plan, the company seeks to acquire a 99% stake in a horticultural entity, Swandale through a share swap.

The assets of Swandale have been valued at $7,8 billion, a consideration which will be met through the issuing of 195 881 208 TZI shares to its current owners in exchange for a 99% controlling stake.

As part of its re-listing plans, TZI also plans to acquire a 50% stake in flower producer, Glen Forest Rose (Pvt), through a share swap. Glen Forest has $5,1 billion worth of assets and will receive 128 050 010 TZI shares in exchange for its 50% stake.

The horticultural company is also understood to have sought a $40 billion debenture from external investors to be used to recapitalise its current assets. Part of the funds will be used to capitalise Marondera-based Mitchell and Mitchell.

TZI is also understood to be planning to acquire a South African-based fresh produce company based in Cape Town as part of efforts to increase its regional foothold.

The South African company specialises in the packaging and processing of fresh produce. It has exports markets mainly in the European Union (EU).

TZI is reportedly in talks with an unnamed Tanzanian-based fresh produce company. The Tanzanian business is said to complement the company’s current line of business as it is involved in the processing of passion fruit for markets in the European Union and Russia.

On conclusion of the restructuring exercise, TZI institutional investors including Old Mutual will have their interest diluted significantly.

TZI chief executive officer, Edwin Moyo, confirmed the company had set a timeframe to relist on the ZSE.

“We have set a timeframe for the re-listing of the company but we first have to meet the requirements of the ZSE and its approval of our planned EGM is part of the strategy to re-list,” Moyo said.

He said the company had disposed of all its non-performing assets and interests in Agri-flora and Fresca.

“We have disposed of our interest in the two companies while we are still to conclude the issues to do with Strategis which I cannot go into as it is in the courts,” said Moyo.

He said the company would still need shareholder approval before implementing listing strategies.

“As a member of the ZSE we have obligations we have to meet and that includes us seeking shareholder approval for any investment or strategy for the company. But I cannot comment on any of our proposed investments at this moment in time,” Moyo said.

Currently, TZI has supply contracts for fresh vegetables with Tesco, Marks and Spencer, Sainsbury, Morrison’s, all in the UK and Woolworth of South Africa.

The company also has supply contracts for fresh cut flowers with Migros in Switzerland, Aldi and Albert in Holland and Tesco in the United Kingdom.

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