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The public quoted agricultural implements manufacturer recently won the bid to buy 57,21 percent of TPHL, another Zimbabwe Stock Exchange-listed company.
The shares were owned by Finance Trust of Zimbabwe, an investment arm of the Reserve Bank of Zimbabwe.
The RBZ has decided to divest from companies which have nothing to do with its core business and TPHL is one of the first sales to be concluded.
Other RBZ companies earmarked for sale include Tuli Coal in which it has a 70 percent shareholding, Transload (Bio Diesel) (50 percent), Sirtech (Pvt) Ltd (65 percent), Homelink (100 percent) and Carslone Enterprise (100 percent). The companies were put up for sale in May last year.
In a circular, Zimplow said directors would seek approval from shareholders at an extra-ordinary general meeting set for 29 June to issue 224 185 085 new ordinary shares to exiting shareholders and acquire 88 526 968 shares in TPHL for US$9,737 million.
Zimplow said the acquisition of TPHL,a company that specialises in selling earth-moving equipment, motor vehicles, and agricultural equipment, would provide new revenue streams for the group within the agricultural and mining sectors.
“While growth opportunities will continue to exist in its animal-drawn implements business, there are considerable opportunities in the tractor-drawn farming equipment segment, particularly in the domestic market. In addition, in light of the robust growth demonstrated by the mining sector and the strong outlook, the board also sees significant potential of your company to consolidate its position within this sector.
“Zimplow’s exposure to TPHL will therefore offer an avenue for product and market diversification within the agriculture and mining sectors, which sectors are expected to be at the centre of Zimbabwe’s economic resurgence,” said the circular.
For the transaction to take place, at least 75 percent of the shareholders have to approve the proposal to increase the share capital while 50 percent have to approve the rights offer.
Online Reporter