Seed Co Limited (Zimbabwe) is set to relist on the Zimbabwe Stock Exchange on June 21, 2021 after the Reserve Bank of Zimbabwe declined to approve its acquisition by Seed Co International Limited.
Shareholders of the two companies had approved their merger pending exchange control approval from the RBZ.
Anticipating approval of the deal, SeedCo Ltd (Zim) had already delisted from the ZSE and got listed on the Victoria Falls Stock Exchange as part of Seed Co International’s operations.
But with the RBZ’s External Loans and Exchange Control Review Committee declining to approve the deal even after appeal, the two entities have now abandoned their merger.
Pursuant to this adverse regulatory decision, the two entities have “no option but to abandon the contemplated consolidation transaction and revert to status quo,” the two companies said in a joint statement.
Seed Co Limited (Zim) has since applied and was granted permission to resume the trading of its shares on the official main board of the ZSE “with effect from Monday June 21, 2021”.
“Going forward the two will continue to operate as two separate companies that are related in so many ways and will utilise a Group Shares Service Unit to harness synergies to the extent possible and permissible by laws, regulations, and best corporate governance practices,” part of the joint statement reads.