THE Zimbabwe Stock Exchange shares opened slightly stronger after a Christmas break, led by gains in some heavyweight shares while the mining index was unchanged. After trading yesterday, the industrial index gained 0,93 percent or 1,38 points to 149,79 points. The mining index of four trading shares was flat at 64,30 points.
Daily turnover improved to US$1,3 million from about US$844 000 last Friday with CBZH and Econet contributing significant trades of 804 000 shares and 181 000 shares respectively.
Econet Wireless, the second largest company in value terms, gained US5c to close at US450c. PPC Zimbabwe rose US2c to US197c while Delta advanced US1,79c to US97,09c.
Seed Co rose US1,01c to US76,11c and Zimplow was up US0,5c to trade to US6,10c.
Zimplow, manufacturers of agricultural implements, is seeking to merge with Tractive Power Holdings Limited through acquiring an additional 42,79 percent equity in TPHL.
Zimplow already has a 57,21 percent stake in TPHL. Subject to shareholders and regulatory approvals, the company intends to acquire the balance of TPHL's issued share capital, being 66 206 418 shares, through issuing 191,78 Zimplow shares for every 100 TPHL ordinary shares.
There is an option for a cash consideration of US$1,10 for every TPHL ordinary share held. On the conclusion of the transaction, Zimplow will own 100 percent stake in Tractive Power Holdings.
If all TPHL shareholders choose to receive Zimplow shares in respect of their shareholdings, the deal has a potential dilution of 18,47 percent on existing shareholders.
TN Bank was unchanged at US19c after the management announced a proposal to delist the bank from the Zimbabwe Stock Exchange to pave way for bringing in potential new equity partners and recapitalise the bank in line with the Reserve Bank of Zimbabwe's new minimum capital requirements for commercial banks.
The management feels that any engagement with potential investors will likely value the company using its trading price which at this time undervalues the firm. Innscor shed a cent to US70c, Padenga and Trust retreated US0,10c to US4,50c and US0,20c respectively.