TSL gets central bank nod to buy out minority shareholder
TSL Limited said it achieved good volume growth across most business units with revenue up 13 percent driven by improved performance on agriculture-based units for the year ended October 31, 2021.
TSL has been given the green light by the Reserve Bank of Zimbabwe to buy out a minority shareholder in Agricura with the transaction poised to be concluded before year-end.
Established in 1962, Agricura is one of the leading and most recognised brands in Zimbabwean agriculture.
It provides a comprehensive range of crop chemicals, veterinary chemicals and pest control services.
“The group received approval from the Reserve Bank of Zimbabwe to buy out a minority shareholder in Agricura Private Limited, resulting in the group wholly owning the business in conclusion,” said the company in a statement.
In 2005, TSL acquired an interest in Chemco through a share swap deal that saw the former acquiring four businesses that included TSL’s 100 percent owned Agriculture Buying Service and TS Timbers. TSL and Chemco started controlling Agpy, Agricor and Agricura.
In 2014, TSL ultimately acquired majority shareholding in Chemco.
“This transaction is expected to be completed before the end of the 2022 financial year,” said the company.
As for the year ended 31 October 2021, Agricura reported a strong growth across most product lines.
This was attributed to increased market share, stock availability and attractive pricing particularly on locally manufactured products.
“However, supply chain disruptions from source markets affected availability for some product lines resulting in sourcing of raw materials and stock from the region at higher prices, whichsuppressed margins.
In the period, the business unit commenced exports into Botswana.
The group partnered with the Financial Securities Exchange (FINSEC), CBZ Holdings Limited and the Government of Zimbabwe to launch the Zimbabwe Mercantile Exchange on August 18, 2021 that is a commodities exchange.
The group said it aims to create sustainable economic value by following a long-term approach to environmental stewardship, social responsibility and corporate governance.
Financially, TSL Limited said it achieved good volume growth across most business units with revenue up 13 percent driven by improved performance on agriculture-based units for the year ended October 31, 2021.
Inflation-adjusted revenue for the period surged by 13 percent to $3,825 billion from $3,386 billion, as the agriculture-based units improved and a significant portion of group revenue was generated in foreign currency using the official exchange rate.-eBusiness Weekly
