CHEMCO Holdings shareholders this week approved the delisting of the company from the Zimbabwe Stock Exchange (ZSE). A manufacturer and distributor of agricultural inputs, Chemco was suspended from the ZSE in 2012.
The de-listing follows after the public was said to be no longer offering value to shareholders and the company also wants to change the business model from being a manufacturer to become a distributor.
TSL- Chemco's majority shareholder is of the view that corrective actions for the company, which has been posting losses over the last three years are best implemented outside of regulations and social pressures of the capital markets. TSL has a 62 percent stake in Chemco. Chemco will become a wholly owned subsidiary of TSL, but as a delisted entity
The company recorded a comprehensive loss of US$380,479 for the year ended October 2013 compared to a US$1,1 million loss same period last year.
Shareholders voted for the issuing about 15,8 million Chemco shares to TSL by way of private placement in exchange for assuming debt and third party trade payables of up to US$2,64 million.
The company said it recorded a 27 percent increase in revenue to US$4,4 million from US$3,5 million during the same period last year.
All resolutions including the conversion of US$2,64 million worth of debt and trade payables into equity and the issue of shares to TSL by way of private placement were unanimously approved. Chemco's flagship brand, Agricura, is held in Agricor, in which Chemo owns 68 percent. Other divisions include Chemical and Pest Control.
In addition to retailing building material and timber supplies through TS Timber branches, Chemco operates Agriculture Buying Services in Harare, which sells agriculture and hardware supplies.
Other shareholders in Chemco include Farm-A-Rama (14 percent), TS Timber (6,5 percent), Agriculture Buying Services (5,6 percent), Old Mutual Life Assurance (5,3 percent) and Alpha Asset Management (3 percent).