Business - Companies & Markets - Featured - Local - March 5, 2021

SeedCo International acquires 95% shares of its local subsidiary

SeedCo International Limited(SCIL) has managed to acquire 95% shares of its local subsidiary, SeedCo Limited(SCL).

This follows SCIL’s open market offer to acquire the entire issued ordinary shares of SCL listed on the Zimbabwe Stock Exchange (ZSE).

The offer was implemented in two stages, the primary offer and secondary offer. During the Primary Offer constituting a control block, SCIL managed to acquire 35% of SCL shares. The Secondary Offer opened late in January and the target shares acquired by SCIL during this offer amounted to 92%.

In a joint statement, the boards of SCL and SCIL announced to its shareholders and the investing public that 95% of SCL ordinary shares has been finally surrendered to SCIL upon the closure of the Secondary Offer on 3 March 2021 and 5% of the shareholders did not respond to the offer.

“Pursuant to the provision of Section 238(1) of Companies and Other Business Entities Act (Chapter 24:31), SCIL hereby gives notice to the remaining shareholders of SCL that it wishes to acquire all the remaining shares at the same consideration as per the original SCIL offer to all SCL shareholders,” reads the statement.

SCIL still needs to acquire all the remaining shares of SCL and the remaining shareholders shall be issued with shares in SCIL based on 1 SCIL ordinary shares for every 0,98 SCL ordinary shares held.

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