Sundaymail Editor
Business Reporter
Seed Co Limited — the local associate of regional seed manufacturer Seed Co International — is expected to resume trading on the Zimbabwe Stock Exchange (ZSE) tomorrow, the bourse confirmed in a statement released on Friday.
The shift back to the ZSE comes after the group shelved plans to merge Seed Co Limited with Seed Co International, which currently trades on the United States dollar denominated Victoria Falls Stock Exchange (VFEX).
Seed Co cancelled the merger plans after the Reserve Bank of Zimbabwe (RBZ) did not approve the transaction.
The development means that SCIL and SCL will continue to operate as two separate companies, listed on the VFEX and ZSE, respectively.
“The Zimbabwe Stock Exchange Limited hereby notifies the investing public of the resumption in trading of Seed Co Limited shares on the ZSE trading platform with effect from Monday 21 June 2021,” said ZSE chief executive Justin Bgoni in a statement.
“The ZSE sought and was granted permission by the Securities and Exchange Commission of Zimbabwe to resume trading in the shares of Seed Co,” Mr Bgoni said.
“Following an offer to Seed Co shareholders by Seed Co International
Limited to acquire the entire issued shares in Seed Co in exchange for new issued shares in SCIL, Seed Co applied for voluntary termination of its listing on Zimbabwe Stock Exchange Limited pursuant to section 11 of the ZSE Listing Requirements.
“ZSE noted that Seed Co no longer met the minimum free-float for a listed company defined in section 87(d) of the ZSE’s Listings Requirements since SICL had acquired circa 95 percent of Seed Co and was now pursuing drag-along provisions.
“However, SICL could not fulfill one of the Conditions Precedent to the completion of the transaction; the Reserve Bank of Zimbabwe Exchange Control approval. Resultantly, Seed Co has withdrawn the application for delisting and will revert to the status quo as the contemplated transaction has been abandoned for the reason stated above,” Bgoni added.
“Trading in Seed Co Limited shares on the ZSE will resume with effect from 21 June 2021.”
The company’s shareholders approved the transaction earlier in March, but the External Loans and Exchange Control Review Committee turned down the proposal that same month, as well as an appeal on June 8.
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