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TURNALL Holdings Limited has resolved to shelve the floating of a rights issue to raise an undisclosed amount of funding to expand capacity as the proposal has caused several shareholders to reconsider their long-term commitment to the business.
In its 2022 full-year results the company indicated that it will pursue avenues to increase its manufacturing capacity through capital projects throughout 2023.
In April the firm told shareholders through a cautionary statement that it was engaged in discussions that involve a potential transaction that may have a material impact on the company’s shares.
“The directors of Turnall Holdings Limited (the Company) wish to advise all shareholders and the investing public, that the company is engaged in discussions that involve a potential transaction that may have a material impact on the company’s shares,” it said.
“The transaction involves raising capital for the company’s major capital expenditure programme through the issuance of shares by way of a rights offer.”
However, the listed construction materials supplier has since withdrawn the cautionary statement.
“As advised in the cautionary statement dated 30 April 2023, the company has been considering a Rights Issue. This has caused several significant shareholders to reconsider their long-term commitment to the business. The shareholders have now reached an agreement for the disposal of their shareholdings to the major shareholder who remains committed to the long-term success of the company,” said Turnall.
“In view of these developments, the cautionary statement of the 30th of April 2023, is hereby withdrawn.”
Turnall spent $622,5 million in 2022 on capital expenditure programs, compared to $60,2 million the previous year.
“The firm said this was mainly aimed at improving production efficiencies.”
Turnall is engaged in the production of building and construction materials comprising corrugated sheeting, flat sheets, pan tiles, pressure pipes, sewer pipes, concrete roofing tiles, and related accessories.
Fibre cement division targets the low-income housing sector, local authorities, and municipalities through two divisions, Turnall Building Products and Turnall Piping Products. The group has distribution outlets in Zimbabwe, South Africa, Mozambique, Zambia and Malawi.
The company last year announced plans to recapitalise the business in order to take advantage of the growing number of infrastructure projects in Zimbabwe and the region as well as upgrading its operations to global standards.
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