Consortium takes over TSL

acquiring 29,7 percent stake from Tetrad-linked investments in the group.
The consortium paid US$11,3 million for 102,7 million shares at a bargain price of US11c, representing a 38 percent premium. TSL traded at US8c in normal trades at the consummation of the deal on Monday.

Closefin is said to be owned by prominent banker Mr Washington Matsaire, business executives Mr Joe Mutizwa, Mr Anthony Mandiwanza, Mr Ray Kaukonde and Mr Nicholas Vingirai .
Stockbrokers Lynton-Edwards handled what was probably one of the biggest deals on the local bourse this year.

Market analysts say special bargain deals on the Zimbabwe Stock Exchange at higher premiums was an indication that most stocks were undervalued, making them attractive for bargain hunters.
The ZSE industrials are trading 15 and 17,5 percent lower than their year-to-date and all-time high levels, with the value of market capitalisation falling 11 percent to US$3,9 billion in the 10 months to October.

Recently, Tiger Brands of South Africa increased its stake in National Foods to 38,7 percent at a 58 percent premium in another special bargain.
But the Securities Commission of Zimbabwe has expressed concern over the frequency of special bargains and premiums paid in these deals.

They maintained that special bargains were being done at the expense of minority shareholders.

TSL this week issued a profit warning statement, advising shareholders that profitability for the year ended October 31 2011 was below expectation, owing to a tough second half caused by – among other things – less tobacco intake following the downward revision in tobacco output and the tougher trading environment.

The worst affected included the agro-chemicals division and a book loss following the disposal of Premier Milling by subsidiary Chemco. TSL owns 39 percent of Chemco.
The Tobacco Industry and Marketing Board had projected a crop size of between 170 and 200 million kg from 120 million kg last year. But deliveries totalled about 132,3 million kh by year-end of the selling season this year.

TSL, which last year controlled about 44 percent of the tobacco sales market, also suffered due to the increase of buyers on the market. The group’s subsidiaries include Hunyani, Reliant Computers, Luxaflor Roses, Bak Logistics, Avis and Cut Rag Processors.