Rutanhi Beverages, a subsidiary of the blue-chip light manufacturing giant Innscor Africa Limited, is positioned to secure a significant equity stake in Tanganda Tea Company following its appointment as the underwriter for a critical US$8 million rights offer.
The capital raise, which seeks to clear a working capital deficit dating back to the Covid-19 era, could see a major shift in the ownership structure of the Zimbabwe Stock Exchange (ZSE)-listed tea producer if minority shareholders fail to take up their rights.
In an abridged circular to shareholders, Tanganda confirmed that Rutanhi Beverages has committed to underwriting the offer to the extent of US$8 million. For its services, the Innscor unit will receive an underwriting fee of 1.5 per cent of the underwritten amount.
The transaction is subject to approval by Tanganda shareholders at an Extraordinary General Meeting (EGM) scheduled for Wednesday, 4 February 2026.
Crucially, Rutanhi has expressed its intention to extend an “irrevocable offer” to Tanganda’s minority shareholders in the future, provided the current transaction does not trigger a mandatory offer under the Companies and Other Business Entities (COBE) Act and ZSE Listings Requirements.
Tanganda, a household name in the beverage and plantation sector, is currently grappling with a US$6,36 million working capital deficit. Management warned that failure to implement the rights offer could result in the company missing out on vital growth opportunities and failing to meet global value chain demands.
The move by Rutanhi Beverages underscores the strategic expansion of its parent company, Innscor Africa Limited. Listed on the Victoria Falls Stock Exchange (VFEX), Innscor has increasingly consolidated its “Beverages” division under the Rutanhi umbrella, which already houses popular brands such as Prodairy and Probottlers.
Analysts suggest that a stake in Tanganda—famed for its tea, coffee, macadamias, and bottled water—would provide Innscor with deeper integration into the agro-industrial sector and a stronger foothold in the regional export market.
If approved, the new shares are expected to rank pari passu with existing shares, with the allotment process and subsequent trading on the ZSE set to follow the EGM.
-herald
