ZIMPLOW shareholders this week unanimously approved the company’s plan to buy out Tractive Power Holdings minorities to complete the merger of the two companies, a move management said will further consolidate its position in the agriculture sector.
Report by Gamma Mudarikiri
At an Extraordinary General Meeting (EGM) held in Bulawayo this week, shareholders passed all the resolutions, which would result in the buy out of 100 Tractive Power’s ordinary shares for 198,78 new Zimplow shares or a cash alternative of US$0,10 for each TPHL ordinary share held.
In an interview with businessdigest this week company secretary Design Mkhonto said the merger of TPHL and Zimplow would further consolidate the company’s position in the agriculture sector and benefit from the expected growth in demand for engine-drawn implements.
The merger is also anticipated to augment Zimplow’s participation in the mining sector through its Barzem Enterprises (Pvt) Ltd to further diversify the company’s revenue streams.
Shareholders also appointed to the board Godfrey Tsikayi Manhambara, Sibani Mngomezulu and Timothy Michael Johnson, while Design Mkhonto, Brendan Mitchell and Anthony Renfric Rowland will be retiring from the board after the buyout of TPH.
The allotment of the new ordinary shares, dispatch of share certificates, listing and commencement of trading of the new shares is anticipated by March 4 2013 while the name of the new holding company will be changed from “Zimplow Limited” to “Zimplow Holdings Limited”.
The company could however not give a trading update, saying it was in a closed period.
In the financial year to August 31, TPH recorded an after-tax profit of US$691 000, weighed down by finance costs, compared to US$1,6 million in the prior year as finance costs rose to US$855 057 in the period from US$451 226 due to borrowings.