Tanganda Tea Company Limited, the largest producer, packer and distributor of tea products in Zimbabwe, has announced proposals to raise US$7.7 million and relocate its listing from the Zimbabwe Stock Exchange (ZSE) to the Victoria Falls Stock Exchange (VFEX).
The company has issued a cautionary announcement regarding potential transactions impacting its share price. The company’s directors are negotiating proposals for an Extraordinary General Meeting.
Shareholders and investors are advised that discussions are underway regarding two significant transactions.
Tanganda Tea Company may migrate its listing from the ZSE to the VFEX and undertake a capital raise through a renounceable rights offer, seeking approximately US$7.7 million.
The company has urged shareholders to exercise caution when trading its shares, as these transactions may materially affect the share price.
“A capital raise by way of a Renounceable Rights Offer to raise circa Seven million seven hundred thousand United States Dollars (US$7.7 million) together (‘the Transactions’).
“Further details regarding the Transactions will be provided in a Circular to shareholders that is being finalised.
“The Transactions, if successful, may have a material effect on the Company’s share price. Accordingly, Shareholders are advised to exercise caution when dealing in the Company’s shares,” the company stated in a cautionary statement.
Owned by Meikles Limited, Tanganda Tea Company is the biggest distributor of bulk tea and packaged tea. It also produces bottled spring water known as Tinga Mira. Tanganda Tea Company also has estates growing avocados and macadamia nuts.
The Victoria Falls bourse has attracted companies with enticing incentives, such as tax-free capital gains and seamless fund repatriation from Zimbabwe.
BridgeFort Capital, previously known as Medtech Holdings, has also announced plans to transfer its Class A and Class B shares to VFEX via an introduction listing.
Listing by introduction allows shares already traded on another exchange to be listed, eliminating the need for marketing efforts since these shares are widely held.
