Zimra delays Tanganda ZSE listing

TANGANDA Tea Limited's listing on the ZSE which was expected to take place on December 9 this year, has been pushed to a future date pending capital gains tax approval from the Zimbabwe Revenue Authority (Zimra).

In a notice issued by Meikles Limited, the deferment comes after Zimra failed to approve capital gains tax relief for Meikles Limited within the listing timeline.

The tax is levied on the capital gain arising from the disposal of a specified asset.

"Meikles is engaging Zimra on the matter which is a condition precedent according to the proposed demerger of Tanganda by way of a dividend in specie to Meikles' shareholders and subsequent listing of Tanganda," the group said.

However, the deferment only affects the implementation and listing dates.

"The board of Meikles would like to apologise to all stakeholders for the deferment but this is being done in the best interest of all shareholders," the group added.

Initially, Tanganda was set to list on the local bourse on December 2, but listing dates were changed to December 9 before the latest development.

Tanganda was once listed on the Zimbabwe Stock Exchange (ZSE) before it voluntarily delisted in 2007 and merged with ZSE-listed Meikles Limited. The business had been operating as Meikles' agriculture subsidiary since then.

The company decided to relist on ZSE because it was in a solid financial position.

Tanganda produces, packs and distributes Zimbabwe's famous tea brand as well as Tinga Mira, a bottled spring water brand.

It also owns estates that produce avocados and macadamia nuts that are mainly exported.