Chronicle Editor
Nqobile Bhebhe, [email protected]
TANGANDA Tea Company, a horticulture firm listed on the Zimbabwe Stock Exchange (ZSE), has announced its plan to transition to the United States dollar-denominated Victoria Falls Stock Exchange.
Shareholders have been informed about this proposal and the company further intends to issue a Renounceable Rights Offer to raise US$7,7 million.
In a notice to shareholders, Tanganda said it is engaged in discussions that will culminate in calling an Extraordinary General Meeting of members to consider and approve the proposed migration.
The planned Extraordinary General Meeting will also tackle the capital raise issue by way of a Renounceable Rights Offer to raise circa US$7,7 million.
“The transactions, if successful, may have a material effect on the company’s share price. Accordingly, shareholders are advised to exercise caution when dealing in the company’s shares,” reads part of the notice.
A renounceable right is an offer issued by a corporation to shareholders to buy more shares of the company’s stock, usually at a discount.
In 2021, Tanganda re-listed the ZSE after over a decade of absence.
The largest producer, packer and distributor of tea in the country has transformed itself over the years from a tea business to a diversified agricultural export business making it an attractive investment.
The company has expanded into macadamia and avocado farming, coffee production as well as spring water bottling.
VFex, a US dollar-denominated stock exchange, is increasingly becoming the preferred stock exchange as it continues to evolve through new listings and new product development.
Since its establishment in October 2020, VFex has seen listings from various sectors such as mining, financial services, tourism, hospitality and clothing.
Some of the companies listed include African Sun Limited, Axia Corporation Limited, Caledonia Mining Corporation, First Capital Bank, Innscor Africa, and Edgars.
The US dollar-denominated exchange provides extended options for capital raising, including debt listing in foreign currency.
VFex bourse is a subsidiary of the ZSE, established to kick start the Offshore Financial Services Centre (OFSC) earmarked for the special economic zone in Victoria Falls.
It is part of efforts to attract global capital and restore foreign investor confidence in Zimbabwe’s capital markets and help companies raise capital in foreign currency.
Online Reporter