Zimbabwe: Tanganda 'Reverses' Full-Scale VFEX Listing Decision

12 December 2024
New Zimbabwe (London)
By Alois Vinga

LISTED horticulture concern, Tanganda Tea Company (TTC) has rescinded the decision to migrate its stocks to the Victoria Falls Exchange (VFEX), instead opting to pursue a special listing on the US$-only denominated stocks market.

Last month, Tanganda board of directors announced plans to hold discussions aimed at relocating the company's listing to capitalise on VFEX's stable currency environment and incentives, reflecting a growing trend among Zimbabwean firms.

The firm, which rejoined the ZSE on February 3, 2022, with an initial market capitalisation of US$134.29 million, has faced significant losses attributed to currency volatility and economic shifts. Following the scrapping of the Zimbabwe dollar and the introduction of the Zimbabwe Gold (ZiG) currency in April, Tanganda's valuation dropped to US$21.67 million, marking a loss of approximately US$112.62 million in market value since its ZSE listing.

But in a major climb down this week, Tanganda informed its shareholders that the decision for a full-scale migration will no longer be the case.

"Reference is made to the Cautionary Announcements published on 28 October 2024 and 18 November 2024 regarding the proposed migration of Tanganda listing from the Zimbabwe Stock Exchange (ZSE) to the Victoria Falls Stock Exchange (VFEX) and the subsequent capital raise by way of a Renouncable Rights Offer to raise approximately US$7,7 million.

"The Directors no longer recommend the migration of Tanganda's listing to VFEX. Instead, they propose the creation of a class of shares to be known as Class A ordinary shares, which will be subsequently listed on the VFEX as a Secondary listing," the company said.

The company said a capital raise by way of a Renounceable Rights Offer to raise US$8 million will follow soon after the issuing, listing and allotment of Class A ordinary shares to the existing ordinary shareholders in proportion to their shareholding in the company.

Tanganda believes such initiatives are intended to enhance the company's capital structure, diversify shareholder offerings and ensure liquidity of the company's shares.

"Further details regarding the transactions will be provided in a Circular to shareholders that is being finalized.

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 added.

Read the original article on New Zimbabwe.

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