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Harare Bureau
DIVERSIFIED agro-industrial conglomerate Aico Africa Limited has approved a series of transactions aimed at recapitalising the new entity, Cottco Holdings Limited.The approval was unanimously made by the group’s shareholders last week.
The Aico structure is falling away after the group found a technical partner for its subsidiary Seed Co. The Zimbabwe Stock Exchange-listed group is also disposing of its 49 percent shareholding in Olivine Industries.
With all resolutions approved, Cottco will remain the only operating subsidiary and will remain listed on the stock exchange. The decision to unbundle is premised on the realisation that, due to a number of exogenous factors brought about by adverse economic conditions, it was no longer possible for the group to achieve the objectives that motivated its inception in 2008.
Among the proposals approved was the group’s $15,1 million rights issue and the sale of Aico’s stake in SeedCo. Shareholders also approved disposal of the group’s non-core assets with an estimated value of about $10 million and the change of name from Aico to Cottco Holdings, which will remain listed on the Zimbabwe Stock Exchange.
On the disposal of the Olivine shares, shareholders approved that the warehouse of the company’s shareholding in Olivine in a trust, pending disposal “on terms and conditions deemed fit by the trustees.”
Post the transfer of the Olivine shareholding to the trust, Aico will terminate its management contract with Olivine and will remain with a shareholding loan, due from Olivine, which stood at $5,3 million.
Online Reporter