SEEDCO International is seeking to merge with its local operation before listing on the yet-to-be launched Victoria Falls Stock Exchange Limited (VFEX).
SeedCo International together with Pretoria Portland Cement and Old Mutual were recently suspended from trading on the ZSE following allegations of being linked to parallel forex market activity, which was leading to devaluation of local currency as well as triggering inflation.
In a cautionary announcement, SeedCo International said it has since been established that none of the dual-listed companies were involved in the alleged activities.
Against this background the seed producer said: “Shareholders are advised that pursuant to the proposal to transfer the ZSE Secondary Listing of SeedCo International Limited from the ZSE to the soon to be established VFEX, a proposal to merge the Zimbabwean operations and the international operations, is being pursued, subject to regulatory approvals, in order to make the VFEX secondary listing of Seed Co International Limited competitive and comparable to other Zimbabwean dual-listed counters.”
The company said the transaction, if successful, may have a material effect on the price of the securities of Seed Co International Limited.
The firm advised shareholders to continue exercising caution when dealing in securities of SeedCo International Limited until further notice.
Meanwhile, the VFEX has since been granted a licence to operate a securities exchange and the bourse is now concluding modalities for the imminent trading.
VFEX is a wholly-owned subsidiary of the Zimbabwe Stock Exchange (ZSE) and it would be denominated in foreign currency.
This, it is hoped would be a permanent solution to eliminating the calculation of implied exchange rates.
The planned stock exchange targets foreign investors as well investors in the mining industry.
A total of 80 firms in the financial and capital markets have expressed interest to participate at VFEX.-chronicle.co.zw