adminnow considering a US$8 million rights offer to recapitalise. The new investor would underwrite the capital raising initiative, sources said.
Emvest, which manages an international investment fund focused on agriculture and agricultural products, acquired 40 percent of Ariston from Delta Corporation in 2009.
Delta had bought into Ariston to tap into its foreign currency reserves at the height of economic chal- lenges characterised by serious foreign currency shortages.
“There is change in control after Emvest sold its 41,8 percent to a South African company which is involved in horticulture,” said one source.
“Now that Emvest has exited, Ariston is now mulling a US$8 million rights offer and the new investor has agreed to underwrite it.”
Ariston would issue 888 888 889 new ordinary shares of a nominal value of US$0,001 at a rights offer subscription price of US$0,009 per share on the basis of two shares for every single share held, according to a statement published by the company yesterday.
Shareholders will meet on February 28 to consider the rights issue.
Analysts believe a “proper” recapitalisation of Ariston would turn around the fortunes of the company given the nature of its business.
Ariston operates three estates. They include Claremont in Nyanga, which is the country’s largest producer of pome and stone fruit. It is also the largest producer of trout and grows exotic flowers. Southdown in Chimanimani has 1 200 hectares of tea, 60 hectares of bananas and 450 hectares of macadamia nuts.
Kent in Norton produces vegetables on a 5-hectare greenhouse plot along with poultry.
Ariston also owns Favco, which distributes a wide range of fresh produce.
“Ariston has not been making money for years although the business has potential to generate profits. What was lacking was adequate working capital and, of course, a huge debt.
“But if there is someone to put in some money, then this will definitely be a positive thing for Ariston,” said an investment analyst with a local bank. No official comment could be obtained from Ariston by the time of going to print yesterday.
With the new South African partner, Ariston can also easily penetrate the SA fresh produce market, observed another analyst.
Ariston yesterday traded at US1,35c on the Zimbabwe Stock Exchange.
Online Reporter