Seed Co International Group is expected to be another addition to the list of companies that trades their shares at the Botswana Stock Exchange (BSE.
Seed Co Group Chief Executive Officer Morgan Nzwere has said the company, which was incorporated in Botswana under the International Financial Services Centre on 7 July 2000 will join the local bourse “in a matter of few weeks”. The company is one of the leading certified seed companies authorized to market seed varieties developed by itself, government and other associated seed breeders in its markets.
On Friday, the company said it is currently working on some of the conditions precedent following regulatory approvals.
“We have already obtained regulatory approvals, and we are only left with a few administrative issues before we come to the market. All the critical steps have been covered,” said Nzwere.
Quizzed on why Botswana, Nzwere said the country is a very stable with a very buoyant and attractive capital market.
Nzwere also observed that amongst the companies currently trading at BSE, none of them has direct linkage to the Agriculture sector. He believes that the listing of Seed Co International will give investors the opportunity to invest in agriculture on the African continent. He added that the selling of shares gives the market the opportunity to invest in agriculture in many African countries through the purchase of one stock.
Seed Co operates in 15 African countries, including Zambia, Tanzania, Malawi, Kenya, Nigeria, Botswana, South Africa, Swaziland, and others .He stated that this stock gives the opportunity to invest in agriculture in these countries.
“We are unlocking shareholder value following the partial unbundling of the Company out of Seed Co Limited by way of a dividend-in-specie distribution,” said Nzwere.
Until recently, the company was a wholly-owned subsidiary of Seed Co Limited, a company incorporated and domiciled in Zimbabwe. In early August 2018 the shareholders of Seed Co Limited approved the unbundling and separate listing of Seed Co International. Seed Co International was partially-unbundled through a dividend-in-specie of its shares to Seed Co Limited shareholders. Following the separation, Seed Co Limited retained a 26 percent shareholding in Seed Co International.