Ashly DhaniBusiness Writer
Border Timbers Limited (BTL) shareholders have agreed to sell 35 percent of the company’s shares to Cicada Plantations Zimbabwe Limited (CPZ)
This will result in Cicada making a mandatory offer for the remainder of the shares through a secondary offer.
In August last year Border Timbers Limited shareholders approved the company’s takeover by Cicada Plantations Zimbabwe (CPZ) in exchange for CPZ shares which meant CPZ became the holder of 100 percent of the issued share capital of Border Timbers Limited.
The transaction involved a share swap, with a swap ratio of 1 new Cicada Plantations Zimbabwe (Private) Limited ordinary share for every 1 1079 Border Timbers Limited ordinary shares held.
This would result in the issuance of 38 758 568 new Cicada Plantations Zimbabwe (Private) Limited shares to the shareholders of Border Timbers Limited.
Border Timbers Limited shareholders who agreed to the terms of the offer will now become shareholders in Cicada Plantations Zimbabwe (Private) Limited, potentially leading to Border Timbers Limited becoming a subsidiary of Cicada Plantations Zimbabwe (Private) Limited.
In a notice to shareholders Border Timbers said the Offer was accepted by Border Timbers Limited shareholders representing not less than 35 percent of the total BTL Shares.
The company said Cicada has since notified the remaining shareholders of BTL of the Secondary Offer.
It noted that the Reserve Bank of Zimbabwe (RBZ) Exchange Control approved payment of the Offer Consideration in the form of CPZ ordinary shares to Non-Resident Shareholders.
It said the Competition and Tariff Commission (CTC) also deemed the transaction to be a non-notifiable transaction
“The Zimbabwe Revenue Authority (ZIMRA) approved the acquisition of the BTL Shares by CPZ and issued a Capital Gains Tax Clearance Certificate.
“As a result, all BTL shareholders who have accepted the offer will be issued Cicada Plantations Zimbabwe Limited shares in accordance with the terms of the transaction.
“BTL Shareholders who had not accepted the offer will remain shareholders in BTL,” reads the notice.
CPZ is owned by Cicada Plantations Investment Limited, a Mauritius-registered company, invested in Zimbabwe under a Zimbabwe Investment and Development Authority licence.
BTL has three divisions: forestry, sawmilling, and manufacturing.
The forestry division manages a total of five estates. Tilbury, Charter, and Sawerombe are in the Chimanimani area to the south of Mutare town, while Imbeza and Sheba are to the north in the Pennalonga area.
Logs harvested by the division are processed at the three sawmills, namely, Charter, Tilbury, and Sheba.
Bongani Ndlovu