Turnall opts out of rights issue on shareholder consensus

Listed consumer discretionary firm, Turnall Holdings, has dramatically withdrawn its cautionary statement in which it said it was seeking a rights offer in order to finance recapitalisation.

In a move which analysts said was a way of avoiding ownership dilution whilst they are also not willing to invest more in the company, they have decided to cash out from the company.

In a cautionary statement the company said; “As advised in the cautionary statement dated 30 April 2023, the Company has been considering a Rights Issue. This has caused several significant shareholders to reconsider their long-term commitment to the business.

“The shareholders have now reached an agreement for the disposal of their shareholdings to the major shareholder who remains committed to the long-term success of the company. In view of these developments, the cautionary statement of the 30th of April 2023, is hereby withdrawn.”

Analyst Namatai Maeresera said; “It is the logical thing to do if you are not willing to invest more in a company that has generally not given you much in the past. Dilution of ownership was obviously going to happen like any rights issue and they have made a smart move.”

This comes after Zimbabwean Brands, a local company in July 2022, announced that it had bought a significant stake in the roofing material manufacturer. It went on to offer to buy out minority shareholders as per the standing rules but was not successful.

The company in July 2022 through a cautionary statement said it had acquired a stake worth 32,55 percent of Turnall Holdings.

Zimbabwean Brands’ I. A. Kurawley in a statement at the time said; “Due to common interest between Mega Market and Zimbabwean Brands, the total common shareholding became 49,59 percent post acquisition.”

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. The company operates through the segments, which include building products, piping products and concrete tile.

The building products segment is engaged in the production of roofing sheets, flat sheets and molded goods. Its piping products segment is engaged in the production of water and sewer reticulation pipes. The concrete tile segment is engaged in the production of concrete roofing products.

It offers products, including garden decor, partition boards, barges, fascia, pantiles, slate and endurites. Its product line also includes Ravenna concrete tile, Nutech non asbestos sheets and Turnall Spanish pavers. The company has its market presence in South Africa, Mozambique, Zambia and Malawi.-ebusinessweekly