Tanganda finalising details of a circular for proposed transactions
Tanganda Tea Company says it is finalising details of a transaction on the proposed creation of a new class of shares and the raising of US$8 million that will be published through a circular to shareholders.
In an earlier cautionary in January this year, Tanganda said it was no longer interested in migrating its listing to the Victoria Falls Stock Exchange (VFEX) and instead will be creating a new class of shares that will be listed on VFEX.
In a statement to shareholders, Tanganda said, “…it wishes to advise shareholders and the investing public that the company is currently finalising the preparation of a circular to shareholders.
“The circular contains details of interrelated transactions and will also include a notice to convene an Extraordinary General Meeting (EGM) of members to consider and approve the transactions,” it said.
The transactions according to the statement include the proposed creation of a new class of shares to be known as Class A ordinary shares, which will be subsequently listed on the Victoria Falls Stock Exchange (VFEX) as a secondary listing.
The other transaction is a renounceable rights offer of the listed Class A ordinary shares to the existing ordinary shareholders in proportion to their shareholding in the company to raise US$8 million.
“The transactions, if successful, may have a material effect on the company’s share price; accordingly, shareholders are advised to continue exercising caution when dealing in the company’s shares,” reads the statement.
Tanganda, listed on the Zimbabwe Stock Exchange (ZSE), is an agribusiness company that produces, packs, and distributes tea, coffee, avocados, macadamia nuts, and spring water.
In its last update for the year to September 30, 2024, the company said the late onset, as well as the uneven distribution of the rains, affected bulk tea production during the first half of the financial year.
However, production gradually improved over the course of the year, with 8 113 tonnes produced, representing a 3 percent increase over the previous year’s output of 7 894 tonnes.
Tea quality was affected by the extreme hot temperatures that prevailed during the year and resulted in a slight decline in export volumes by 2 percent to 6 137 tonnes from 6 238 tonnes achieved in the prior year.
Avocado production of 3,976 tonnes grew by 84 percent over prior year production of 2,156 tonnes due to the increased maturity profile of the plantations.
The crop’s exports grew by 40 percent to 2 997 tonnes from 2148 tonnes achieved in the prior year.
Macadamia production of 1 626 tonnes increased by 77 percent over prior year production of 921 tonnes.
Exports declined by 3 percent to 1,508 tonnes from 1 551 tonnes in the previous year, due to logistical issues caused by rescheduled ships, affecting the last consignment of 286 tonnes.
