Monday, June 1, 2020

BSE to get a new listing

Seed Co Limited plans to unbundle its wholly owned subsidiary and to list it on the Botswana Stock Exchange as part of strategies to defend its turf and continue pursuing expansion.

In a circular sent to shareholders, where the company is listed on the Zimbabwe Stock Exchange, the agriculture focused company says in the quest to defend significant investment already deployed and also to continue to make new investments in the region, the company directors formulated a plan to create a regional platform that makes it possible to attract permanent capital to continue growing existing busineses and establishing markets.

The company directors say in order to unlock shareholder value and position the continental operations for growth, the board is proposing to partially unbundle 71 percent of Seed Co International. Post the proposed private placement to be carried out immediately after the unbundling, Seed Co Limited will retain 26 percent shareholding in Seed Co International.

The subsidiary, Seed Co International is a Botswana registered International Financial Services Company with holdings of other subsidiaries across 15 African markets.

Subsequent to the unbundling process and private placement, the board is also proposing to list separately on the BSE for its primary listing, while having secondary listing on the ZSE.

“The principal rationale for the proposed transactions is to mobilize capital, to defend the investment already deployed in the region and fund other expansion opportunities, through a structure that will also unlock and preserve shareholder value whilst providing direct geographical portfolio choice for investors,” the company said in the shareholder circular.

The company directors further said the proposed primary listing on the BSE is to provide a vehicle for future offshore fund raising and to leverage on another platform for the rating of the company’s equity. Moreover, the directors said the BSE appealed to them as Seed Co International has a track record and established funding networks in Botswana dating back to the year 2000 when it was incorporated in Botswana.

The proposed unbundling of Seed Co International and its subsequent listing on the BSE is subject to the approval by the shareholders of Seed Co Limited of the transaction resolutions at the Annual General Meeting to be held on the 9th of August 2018. The company is also seeking approval from BSE’s Listings committee of the primary listing by introduction of ordinary shares.

Seed Co Limited is a public company incorporated in Zimbabwe and quoted on the ZSE, and is a leading producer and marketer of certified crop seeds in Africa.

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