Firms awaits RBZ approval to complete liquidation transaction
ARDEN Capital (formerly Brainworks), says it is now waiting for approval from the Reserve Bank of Zimbabwe (RBZ) to conclude its proposed voluntary liquidation transaction.
This comes as shareholders gave the green light for the transaction to go ahead at a special meeting held on 20 December 2021.
“The total number of Arden Capital ordinary shares in issue is 117 266 523 shares (109 491 523 listed votable shares plus 7 775 000 treasury shares), of which 94 102 261 shares had votes cast at the Special meeting, representing 85,94 percent of the total votable ordinary shares.
“The approval of the Reserve Bank of Zimbabwe for the Proposed Transaction, being a condition precedent to the proposed Transaction, remains outstanding, “the company said in a circular.
The company in June 2021 said that it had commenced a process of reviewing the Company’s prospects, financial health, strategy, and ability to continue to operate as a listed investment holding company.
As part of the transaction, the voluntary liquidation will result in the cancellation and delisting of Arden shares on the Johannesburg Stock Exchange (JSE.
According to the circular, the company also advised Shareholders that one of African Sun Ltd.’s lessors had initiated a lease tender process in respect of property known as The Kingdom at Victoria Falls, which is currently being leased by African Sun Ltd.
The company said ASL continues to occupy the property and has signed an extension of the current lease with the landlord to 28 February 2022 in order to facilitate the ongoing Tender Process, which ASL has elected to participate in.
“The Tender Process closed on 30 November 2021, but the outcome of the Tender Process is still unknown.
“Given the potential impact of the expired lease on ASL’s profitability, ASL remains in a cautionary period and accordingly shareholders should similarly continue to exercise caution in dealing in the Company’s securities until a further announcement regarding the Tender Process is made,” read part of the circular.
Arden has also concluded the sale of its logistics company FML, which moves bulk fuel across the region, for US$1 million for which the net proceeds will be used to pay off debts.
“Arden has concluded an agreement to an unrelated third party for a disposal consideration of US$1 million (R15, 315,700.00 at an exchange rate of 15.3157, being the ZAR: USD exchange rate at the date of the disposal,” the company said.
It noted that Arden Capital will ultimately deploy the net proceeds towards settling various third-party creditors and other liabilities.
Arden was originally established as a listed investment company through which Shareholders could gain exposure to various investment sectors with a focus on investing in Zimbabwe.
The Group’s listing was aimed at achieving liquidity for its Shareholders by providing them with a tradeable instrument on an internationally recognised stock exchange and providing the Company with a platform through which to raise future funding for the growth of its portfolio.-eBusiness Weekly
