SeedCo deal gets seal of approval

VICTORIA Falls Stock Exchange (VFEX) -listed seed breeder, SeedCo International Limited (SCIL) on Friday said its offer to swallow up its parent company, SeedCo Limited (SCL) had received overwhelming support from shareholders.

It said over 90% of shareholders approved the deal.

The transaction had to go through a secondary offer after some shareholders had turned down the primary offer made at the end of last year under the same terms.

"Notice was given to the holders of target shares in the SeedCo Limited that as per the results of the offer by SeedCo International Limited to SCL shareholders, SCL's secondary offer to shareholders…was accepted by holders of at least 90% of the target shares," company secretary Terrence Chimanya said.

After the tie up, the local operation is set to terminate its 25-year presence on the ZSE.

The combined assets will then switch to the foreign currency-denominated VFEX, where SCIL became the first to list when it opened in October.

As part of a consolidation plan that directors hope will unlock shareholder value, the group's assets are being merged, with the local unit exiting the ZSE.

Prior to the consolidation, the group operated under two units, with SCIL taking care of the operation's foreign business.

SCL's business was mainly based on supplying seeds to the Zimbabwean market.