HomeBusiness DigestTedco to relist as Nyore Nyore

Tedco to relist as Nyore Nyore

Ngoni Chanakira

TEDCO Ltd is demerging and relisting on the Zimbabwe Stock Exchange (ZSE) as Nyore Nyore Ltd.

ica, sans-serif”>It is reliably understood the move will get underway during the first quarter of next year.

Company chairman Simba Mangwende said it was considered appropriate to focus the firm’s transformation on unlocking shareholder value by first separating the two distinct businesses of retail and manufacturing.

“This should result in the market placing proper valuations on the separate companies and make it easier to establish a more representative value in future transactions,” Mangwende said.

Tedco shares were yesterday trading at $135.

Mangwende said full details of the proposed demerger would be circulated to shareholders once all the regulatory approvals had been obtained from the bourse and authorities.

As per ZSE requirements, cautionary statements will be issued to warn shareholders when dealing in Tedco shares when the demerger takes centre-stage.

“In line with the focus as highlighted before, it is the board’s intention to change the name of the company to Nyore Nyore Ltd once the demerger is complete,” he said.

“The board also feels that our year-end of September coincides with our busiest trading period in the last quarter of the year. It is therefore the opinion of the directors that the year-end be, and is hereby changed to December 31.”

The chairman said the audited accounts and annual report would therefore cover a 15-month period.

“Approval for this has been received from the relevant authorities,” Mangwende said.

The chairman said this year was the most significant period of transformation since the company’s listing in 1974.

He said this had resulted in a strong set of results particularly in the second half of the period.

For the period ending September 30 Tedco’s turnover shot up 497% to just under $25 billion.

Profit before tax increased by 645% to $10,4 billion, up from $1,4 billion.

Profit after tax growth stood at 713%.

Mangwende said earnings per share were up a significant 689% to $30,92, up from $3,92 during the last period.

He said the separation of the company created two independent and focused businesses in the Zimbabwean retail and household goods production markets with leading positions, excellent potential and dedicated management teams.

The chairman said Zimbabwe’s poor macro-economic environment had however, resulted in increased operating costs while production output had remained steady.

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