The proposed partial unbundling of Seed Co Limited and the subsequent separate listing of its regional operations on the Botswana Stock Exchange will allow the company to pursue its regional expansion projects as it will be backed by the availability of solid hard currency funding.
According to an abridged circular to shareholders, the regional listing will set Seed Co International on a path for exponential growth as it will allow the company to attract focused capital to recapitalize the business whenever necessary.
“In view of the hard currency funding needs of the group’s regional growth trajectory and the need to unlock, preserve and grow shareholder value, the directors are proposing to partially unbundle through a dividend in specie, and separately list on the BSE the group’s regional operations, which are held through Seed Co International.”
As part of the expansion plans, the Private Placement and regional listing will allow the company to acquire regional seed industry players of good strategic fit to consolidate existing market positions. The expansion drive is also expected to go beyond Africa with planned moves into India and Pakistan, making the unbundling plan important in the company’s request to unlock shareholder value. Another plus, even for Zimbabwean shareholders, is that they are set to benefit amid plans for Seed Co International to have a secondary listing on the Zimbabwe Stock Exchange on top of the 29 percent shareholding that will remain with Seed Co Limited.
Source: Chronicle.
