Seedco International Limited is almost done in the process of wholly acquiring Seedco Limited. Seedco International is a company registered in Botswana while Seedco Limited is registered at Zimbabwe.
According to a statement issued today, the offer to Seedco Limited shareholders to transfer their shares to Seedco International Limited which was implemented in two (2) stages (stage 1 and stage 2) – opened in 13 January 2021 until 2 March 2021 saw ninety-five percent (95%) of shares transferred from Seedco Limited to Seedco International Limited.
“Notice is hereby given to the shareholders of Target Shares in Seedco Limited (“SCL”) that, as per the Results of the Offer by Seedco International Limited (“SCIL”) to SCL shareholders above, SCIL’s Secondary Offer to shareholders holding Target Shares was accepted by holders of at least 90% of the Target Shares.” the two companies advised.
However, the Seedco International vows to push towards acquiring all the remaining shares from Seedco Limited, “Accordingly, all the remaining shares of SCL shall be acquired by SCIL and the Remaining Shareholders shall be issued with shares in SCIL based on 1 [one] SCIL ordinary share for every 0.98 SCL ordinary shares held”
This is a move by Seedco on a strategic response to the changes in the status of its secondary listing in Zimbabwe brought by policy initiatives introduced by the government.
“There shall be cross movement of Seedco International ordinary shares between the BSE [Botswana Stock Exchange] and the ZSE [Zimbabwe Stock Exchange] subject to the unbundling and dual listing approval conditions for Seedco International as stipulated by the reserve bank of Zimbabwe.” they mentioned in their 2020 Financial report.
Seed Co Ltd (Seed Co) was founded in 1940 as the Seed Maize Association (SMA) of Zimbabwe. In 1983, the SMA merged with the Crop Seeds Association to form Seed Co and has since grown throughout Africa by breeding, producing and marketing hybrid field crops. The company currently operates on seventeen (17) countries in Africa and ranks second in the Eastern and Southern Africa Index.
