adminagricultural inputs, yesterday told shareholders in a statement that its directors were engaged in discussions that may have material impact on the value of its shares.
TSL has a 62 percent stake in Chemco.
“The public is no longer offering value to shareholders and the company also wants to change the business model from being a manufacturer to become a distributor,” said a source familiar with the matter.
“Chemco will become a wholly owned subsidiary of TSL, but as a delisted entity.”
In March this year, Chemco chairman Mr Anthony Mandiwanza hinted that the company could delist, but did not give dates.
Chemco’s flagship brand, Agricura, is held in Agricor, in which Chemo owns 68 percent. Other divisions include Chemical and Pest Control.
In addition to retailing building material and timber supplies through TS Timber branches, Chemco operates Agriculture Buying Services in Harare, which sells agriculture and hardware supplies.
Other shareholders in Chemco include Farm-A-Rama (14 percent), TS Timber (6,5 percent), Agriculture Buying Services (5,6 percent), Old Mutual Life Assurance (5,3 percent) and Alpha Asset Management (3 percent).
Online Reporter