Zimbabwe: Padenga to Switch Listing to the Vfex

Crocodile breeding firm, Padenga Holdings Limited, will terminate its listing on the main board of the Zimbabwe Stock Exchange (ZSE) and relist on the Victoria Falls Stock Exchange (VFEX).

VFEX is a ZSE appendage that trades exclusively in foreign currency. It was set up by the Government this year in an effort to establish an alternative securities market that attracts global capital.

Padenda said in an abridged circular to shareholders last Friday that the board of directors had proposed the termination of the 11 year ZSE listing to move over to the VFEX by way of introduction.

The firm, which also has interests in gold, said the migration to VFEX was motivated by the need to benefit from incentives announced by Finance and Economic Development Minister Mthuli Ncube.

Apart from the provision to trade in foreign currency, other incentives enjoyed by firms listed on VFEX include exemption from capital gains tax and withholding tax and low corporate income tax.

The decision to terminate the just over a decade old listing and relaunch the company's share recently established VFEX, the company said, was initiated by the board and not in any way shareholders.

Padenga said the VFEX will allow Padenga to raise capital in foreign currency from a wider and deeper potential market, expand the existing business as well as acquire or establish new business.

Further, the migration enables Padenga to fund acquisitions for both the company and gold mining subsidiary, Dallaglio Investments, which should help create jobs and grow the economy.

"(It also enables) existing shareholders to realise the United States dollar value of their holdings in the market, thus allowing greater liquidity and for the broadening of the shareholder base," Padenga said.

The VFEX listing will open Padenga to outside investment; improve the firm's recognition, commercial standing and investor profile from exports by enhancing repatriation of capital and dividends.

Padenga Holdings is one of the world's leading suppliers of premium quality crocodilian skins and produces 51 percent of Zimbabwe's cumulative annual wet-salted crocodile skin exports.

Its alligator farm in the US, has continued to grow its business by producing premium quality alligator skins.

The Zimbabwean operation produces both crocodile skins and meat, exported to the EU.

The group's Zimbabwe operation consists of three Nile crocodile farms located on the shores of Lake Kariba, which sits on the mighty Zambezi River, 340 kilometres northwest of the capital Harare.

Kariba Crocodile Farm (KFC) is the oldest of the farms. It has the capacity to produce 15 300 skins annually. Nyanyana Crocodile farm (NFC), contiguous with KFC, is Padenga's newest farm, with the same capacity as KFC. Ume Farm, which is located 65km from KFC and NFC on the Ume River, is the oldest of Padenga's crocodile farms. Although it is the largest, it has the same capacity of 15 300 skins annually.

Tallow Creek Range, is Padenga's alligator farm in Texas, US. The farm was acquired as a small barn containing just 40 production pens, producing about 3 000 skins annually at that point it was bought.

Dallaglio develops and operates Zimbabwean commercial gold mines. The company successfully delivered on a US$15 million greenfield project at Pickstone Peerless Mine near Chegutu in 2015.

Since 2015, Pickstone Peerless has produced 2 984 kilogrammes of gold while more than US$14 million has been invested to revamp the mine's processing plant and upgrade its capacity.

Dallaglio also acquired Eureka Gold Mine in Guruve in 2018. It has underlying claims, measured and indicated resource of 945 807 ounces. The mine's total resource stands at 789 424 ounces.

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