Ariston approves $8m rights issue

The approval was made this week.
Afrifresh, which holds a 42 percent controlling stake in the group, will be the underwriter.
Funds raised from the rights issue are to be applied as follows: debt restructuring $3 million, capital expenditure $2 million and working capital $2,8 million.
“We are hopeful that the entrance of Afrifresh Group which is expected to take over the Emvest stake, should result in significant value addition for Ariston,” said the company in a statement.
Towards the end of last year, the group sought to raise $6 million in 90 days having realised the serious financial challenges it was under.
However, until now the firm has not raised the money and will have to wait another 30 days to access financing.
Last week, the group had access to bridging finance.
Ariston projects to increase its turnover for the year to $22,2 million compared to $14,7 million in 2011.
The group is expected to post a profit before tax of $463 000 improving from a loss of $2,8 million for the financial year ending 31 December 2011.
Afrifresh has a distinct presence and experience, with 250 products and a presence in 15 countries.
In Zimbabwe, Ariston Holdings operates five estates totalling 7 864 hectares of which 3 797ha is arable land growing a wide variety of agricultural produce as well as supplying supermarkets with local and imported produce          through its distribution company, FAVCO.
The five estates are Southdown in Chipinge, which grows tea and macadamia nuts, Clearwater in Chipinge, which is also into tea and macadamia nuts while, Roscommon in Chimanimani           grows tea, macadamia nuts and bananas.
Kent Estate in Norton operates poultry and livestock businesses as well as vegetable production              while Claremont in Nyanga produces pome and stone fruit and is the largest.