Online Reporter
Nelson Gahadza
Senior Business Reporter
DIVERSIFIED group Innscor Africa Limited now holds a 27 percent stake in Tanganda Tea Company Limited after underwriting the firm’s US$8 million rights offer through its subsidiary, Rutanhi Beverages Limited.
A company acquires shares through an underwriting transaction primarily when the underwriter purchases the unsubscribed portion of a public offering.
Commenting on Innscor’s half-year financial results to December 31, 2025, chairperson Mr Addington Chinake said the transaction represented a compelling strategic opportunity for the group, with the potential to unlock value for the business and the broader agriculture sector.
“Shareholders will have noted that the group, through its beverage holding entity, Rutanhi Beverages Limited, recently underwrote a US$8 million rights offer undertaken by Tanganda following approval by shareholders,” he said.
“The transaction represents an attractive strategic opportunity and the group believes it can add considerable value to the Tanganda entity and Tanganda shareholders, while also contributing to the continued development of Zimbabwe’s agriculture sector and ensuring the long-term preservation and sustainable growth of one of Zimbabwe’s most iconic brands.”
Tanganda, an agribusiness company that produces, packs and distributes tea, coffee, avocados, macadamia nuts and spring water, had sought to raise US$8 million in fresh equity to stabilise its balance sheet, address a deepening working capital deficit and fund critical capital expenditure.
The company said the capital raise was necessitated by persistent cash flow pressures that emerged during the Covid-19 period, resulting in a cash deficit of approximately US$6,36 million.
Management had warned that failure to urgently address the liquidity strain could impair its ability to meet key financial obligations, sustain operations and capitalise on available growth opportunities.
To address these challenges, Tanganda’s directors proposed a renounceable rights offer of 263 821 324 new ordinary shares at a subscription price of US$0,0303 per share.
Shareholders were entitled to subscribe for one new share for every 0,9896 shares held as at the record date of February 23, 2026, with payments required in full in United States dollars.
Proceeds from the capital raise were expected to support working capital requirements, including procurement of packaging materials and inputs for packed tea and bottled water, as well as servicing debts owed to key suppliers of fertilisers, chemicals and fuel.
In addition, part of the capital will be directed towards replacing the water bottling plant and refurbishing infrastructure at Tingamira Estate, while also funding the grid-tying of three existing solar plants at Ratelshoek, Jersey and Tingamira Estates.
Innscor Africa is a diversified group focused on light manufacturing businesses that, together with strategically integrated agricultural operations, produce Zimbabwe’s iconic brands in the consumer staple product space.
Over the last five years, from 2020 to 2025, Innscor Africa has heavily invested in expanding manufacturing capacity, automation and infrastructure in Zimbabwe, totalling over US$127 million between 2022 and 2023.
Key investments include new automated bakery lines, snacks and biscuit plants, pasta production and significant investment in renewable solar energy across sites.
According to Mr Chinake, the investment programme allowed the establishment of new business units and products, and enabled the expansion and modernisation of existing manufacturing lines.
Meanwhile, Innscor’s beverage and light manufacturing segment, comprising Rutanhi Beverages Limited units, including Prodairy, Mafuro Farming, Probottlers and Buffalo Brewing Company, alongside Natpak and a non-controlling interest in Probrands, delivered mixed operational performance during the period under review.
At Prodairy, volumes grew by 7 percent compared to the prior period, supported by strong demand for the Revive product range.
Mr Chinake said additional capacity investments are scheduled for commissioning early in the new financial year, which are expected to improve production consistency and flexibility across product lines and packaging formats.
In contrast, bottlers recorded a 17 percent decline in volumes, reflecting a deliberate shift away from high-volume, low-margin products, as well as the continued impact of the sugar tax on the local beverage sector.
Mr Chinake indicated that optimisation initiatives focusing on cost structures and route-to-market strategies are ongoing, although further work is required to achieve a sustainable operating model.
During the period under review, Buffalo Brewing Company operated at full capacity throughout the period, with volumes rising by 17 percent year-on-year.
Mr Chinake said the growth was attributed to strong consumer demand, expanded distribution, consistent product quality and ongoing brand-building efforts.
“Additional brewing and filling capacity was commissioned towards the end of the period to support continued growth,” he said.
At Natpak, overall volumes were marginally ahead of the comparative period, with varied performance across divisions.
The Flexibles division recorded a 17 percent increase in volumes, driven by recovering demand in the bakery and sugar segments, while the Rigids division declined by 8 percent due to subdued beverage sector demand.
The Sacks and Corrugated divisions posted modest growth of 3 percent and 6 percent, respectively.
The Sacks division benefitted from a normalisation in maize milling activity following drought-induced demand in the prior period.
Mr Chinake said the group remains focused on improving efficiency and expanding recycling capabilities to enhance sustainability across the packaging value chain.
In the period under review, Probrands registered steady growth, with the Condiments and Specialised Products categories expanding by 78 percent and 26 percent, respectively, as the business continues to reposition its portfolio towards higher-margin fast-moving consumer goods.
Tinaye Agere