Seed Co Limited, Zimbabwe’s largest seed producer, intends to list on the Victoria Falls Stock Exchange (VFEX) after receiving board approval to depart from the Zimbabwe Stock Exchange (ZSE).
If the plan goes through, the company will follow in the footsteps of Seed Co International, a sister company, which became the first counter to list on the forex-indexed exchange when it began trading in October 2020.
However, Seed Co stated in a regulatory filing with the ZSE yesterday that following board approval, the VFEX listing plan was back on track and that more announcements would be made, NewsDay reported citing the firm’s statement. Reads the statement: Shareholders of Seed Co Limited and the investing public are advised that the board has approved the migration of the company’s listing from the Zimbabwe Stock Exchange to the Victoria Falls Stock Exchange.
Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities. Further announcements will be made in accordance with regulatory requirements as and when there are material developments.
The Pan-African Seed Breeder resumed trading on the ZSE in June 2021, almost eight months after ceasing it in order to pursue the VFEX listing.
As part of the agreement, Seed Co would collaborate with Seed Co International Limited, a subsidiary listed on the Botswana Stock Exchange (SCIL).
The seed empire’s combined assets would subsequently be transferred to VFEX.
Directors of the Seed Co group were certain that a VFEX listing would help the company achieve its expansion goals because the new bourse deals in foreign exchange at the time.
Imara, one of Zimbabwe’s largest advising firms, expressed worry about the acquisition, claiming it disadvantaged native investors.
It said should Seed Co. Zimbabwe be delisted and entirely bought by SCIL, it won’t be shocking to see Limagrain buying out the minorities of SCIL in the future, thereby depriving African investors of the chance to own such a profitable company.
The Reserve Bank of Zimbabwe (RBZ) turned down the proposal.