Online Reporter
Nqobile Bhebhe,Zimpapers Business Hub
Tanganda Tea Company Limited, a horticultural firm listed on the Zimbabwe Stock Exchange (ZSE), has abandoned plans to create and list Class A ordinary shares on the Victoria Falls Stock Exchange (VFEX) as part of its capital-raising strategy.
Instead, the company will now undertake a capital raise of US$8 million through a Renounceable Rights Offer to existing shareholders on the ZSE.
This was confirmed by company secretary Sharon Kodzanai in an amended cautionary statement.
“There will no longer be a creation and secondary listing of the proposed Class A ordinary shares on the VFEX,” she said.
“The capital raise by way of a Renounceable Rights Offer to the existing ordinary shareholders in proportion to their shareholding in the Company to raise eight million United States Dollars (USD8 million) will be undertaken on the Zimbabwe Stock Exchange.”
A Renounceable Rights Offer is a fundraising mechanism that allows existing shareholders the right but not the obligation to buy additional shares, or transfer those rights to others. This enables companies to raise funding from current investors without significantly diluting existing ownership or resorting to external debt.
The strategy also ensures that shareholders retain control while offering the company much-needed capital to finance its operations and growth.
Tanganda, one of Zimbabwe’s largest agribusinesses, specialises in the production, packaging and distribution of tea, coffee, macadamia nuts, avocados and bottled spring water.
