HomeBusiness DigestTedco seeks $23,75b

Tedco seeks $23,75b

Eric Chiriga

TEDCO Ltd has gone into the market looking to raise $23,75 billion for working capital and to finance some major projects that the company is planning to undertake.

T face=”Verdana, Arial, Helvetica, sans-serif”>The rights offer is on the basis of one ordinary share for very two already held.

In terms of the rights offer, 47 488 462 ordinary shares of $1, 00 each, in the issued share capital of Tedco will be offered to existing holders of ordinary shares in Tedco.

The rights offer has been underwritten in full by CBZ Bank Ltd. The rights offer shares will be listed on the Zimbabwe Stock Exchange from November 21. Tedco chairman Simba Mangwende said the directors feel that the company is currently undercapitalised hence the rights issue.

“The board of directors of Tedco believe that the business is presently undercapitalised and that the time is opportune for rectifying this situation through a rights offer to raise approximately $23,75 billion,” Mangwende said.

He said strengthening the balance sheet would give Tedco, its subsidiaries and associated companies the financial muscle to regain ground lost year.

There are several opportunities available for the business to improve its top line as well as bottom line performance.”

Mangwende said the funds would be used to pay off part of the debt and complete the recapitalisation process.

The company operates more than forty stores under the brand names like of Nyore-Nyore Zimbabwe Furnishers and House of Khumali, Blooms, and Sleep Eezy.

Tedco recently completed its restructuring exercise under which it intended to separate its furniture retail unit, Nyore-Nyore from the manufacturing division.

Tedco has been going through a number of restructuring exercises following the acquisition of a 35% stake in the company.

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