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Aico Africa Ltd shareholders last week unanimously approved a series of transactions aimed at recapitalising the new entity Cottco Holdings Ltd born out of the unbundling of the conglomerate.
The Aico structure is falling away after the group found a technical partner for its subsidary Seed Co. The group is also deposing of its 49 percent 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 longer possible for the group to achieve the objectives that motivated its inception in 2008.
Among the proposals approved was the group’s US$15,1 million rights issue and the sale of Aico’s stake in Seed Co.
Shareholders also approved disposal of the group’s non-core assets with a estimated value of about US$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 warehousing of the company’s shareholding in Olivine in a trust, pending disposal “on terms and conditions deemed fit by the trustees”.
Online Reporter