Turnall mulls floating rights offer to raise capital
TURNALL Holdings says it is considering raising working capital by way of a rights offer, a transaction the company said may have a material impact on the company’s shares.
The company in a notice to shareholders and the investing public said further details of the transaction will be available once the discussions have been finalised.
“. . . the company is engaged in discussions that involve a potential transaction that may have a material impact on the company’s shares.
“The transaction involves raising capital for the company’s major capital expenditure programme through the issuance of shares by way of a rights offer,” it said.
Turnall is engaged in the production of building and construction materials comprising corrugated sheeting, flat sheets, pan tiles, pressure pipes, sewer pipes, concrete roofing tiles and related accessories.
Recently, the company made board and managerial changes, a development likely prompted by changes in the shareholding structure, which was consummated last year.
On June 30, 2022, ZimBrands concluded a purchase of 32,55 percent of Turnall Holdings at $4,57 per share and a further 10 percent on July 29, 2022 at the same price per share, taking the business holding in the company to 42,55 percent.
The company went on to offer to purchase Turnall shares from minority shareholders at a price of $4,57 per share with that being paid in cash.
ZimBrands primary business entails the import of critical raw materials for supply to Zimbabwean processors thereby ensuring local value addition and continuous supply of basic commodities.
The company last year announced plans to recapitalise the business in order to take advantage of the growing number of infrastructure projects in Zimbabwe and the region as well as upgrading its operations to global standards.
In a recent update, Turnall said it had made significant progress on the refurbishment of the Harare fibre cement plant and production is expected to commence in the second quarter of 2023, resulting in significant cost savings.
The group is also going to resume the production of Inverted Box Rib (IBR) roofing sheets which will commence in the 4th quarter of 2022.
Earlier in the year, the group indicated it was carrying out plant refurbishments at the Harare plant, in addition to several projects valued at US$4 million.”-chronicle
