adminworkers at its annual general meeting at the end of this month.
A total of 53 100 000 ordinary shares will be given to workers and “70 percent of options under the (share option) scheme vest in years four and five”.
The share scheme will be held under terms and conditions approved by shareholders in 2003 before Aico rebranded from the Cotton Company of Zimbabwe.
On restructuring and reverse listing Aico inherited the scheme, except “vesting of the shares was adjusted to ensure 70 percent of options under the scheme vest in years four and five relative to 20 percent in the 2003 option”.
Aico said the scheme to be set aside and allocated, as directors deem fit, is meant to ensure staff is rewarded for loyalty and long-term performance.
The diversified company’s workers will join the National Social Security Authority, which has a 19 percent stake, Zimre Holdings, 17,2 percent and Waughco Nominees, 12,4 percent, among the top shareholders in the agro-focused concern.
Workers will benefit from the scheme, considering they may choose to sell their shares or alternatively keep them and earn good dividends.
Aico is generally considered a good counter as it rarely makes losses.
In efforts to enhance its profitability potential Aico is offloading its 75 percent stake in Scottco and its entire stake in loss-making frozen vegetables arm, Exhort.
After that, a leaner more focused Aico will concentrate on the core business of cotton, seed and fast-moving consumer goods under Olivine Industries.
The group reported a US$33,2 million profit from operations for the full year to March 31 2011 after registering a 160 percent rise in profit compared with last year.
This strong growth in profitability followed a strong revenue performance (US$210 million), bolstered by firming commodity prices during the financial period under review.
The strong revenue performance was regardless of the fact the fast that moving consumer goods division registered low margins, but high operating costs.
Group profit in the period to March was affected by the poor showing in the FMCG division and the losses registered in disposal of discontinued operations.
Aico recently shelved its US$50 million rights issue, which was meant to rescue its associate Olivine Industries and also expunge the group’s expensive debt.
The group is valued at US$100 million and the rights issue sought to raise half its market value.
Shareholders could have been scared by the amount being sought considering the biting liquidity in the economy.
Bongani Ndlovu
Online Reporter