CSC Boustead Beef Zim mulls VFEX listing
TINASHE MAKICHI
Troubled meat processor, CSC Boustead Beef Zimbabwe plans to list on the United States dollar denominated stock exchange Victoria Falls Stock Exchange (VFEX), Business Times has established.
The company, currently under receivership, had planned to resume operations this quarter.
But, the plan has been deferred to next year owing to delays caused by the adverse impact of Covid-19.
Multiple sources told Business Times that discussions to list on VFEX are underway.
They said a listing prospectus was ready and has been submitted to various financiers across the world.
“There are discussions ongoing around the future of the company now that resumption of Bulawayo operations is beckoning.
Critical equipment has so far been imported and rehabilitation of the Bulawayo plant is in full throttle. There are strong intentions to list on VFEX once the plant is up and running. The investors are pushing for the listing once the Bulawayo plant is up and the idea is to create value for the shareholders and the company. A prospectus has been created and already submitted to various financiers across the world,” a source close to developments said.
Contacted for comment, CSC Boustead Beef Zimbabwe consultant Reginald Shoko told Business Times that listing on VFEX was always a welcome development without shedding more details on the discussions.
“We will welcome such an opportunity when it comes. Listing on VFEX will go a long way in creating value for the shareholders,” Shoko said.
Boustead Beef, a United Kingdom investor entered into a 25-year joint venture agreement with the Government in January 2019, to facilitate the revival of the company under a US$400m deal.
The company was recently put under a corporate rescue scheme now led by a prominent Bulawayo lawyer Majoko, who was elected by creditors to allow for its recovery under protection from litigation.
Insiders told Business Times that the appointment of a new corporate rescue practitioner has boosted confidence among CSC stakeholders and resumption of operations is now on the horizon.
Boustead Beef Zimbabwe is being financed by various investors from the United Kingdom, America, Switzerland, Hong Kong and Australia, all having shareholding in the business.
CSC’s Bulawayo complex is the largest meat slaughtering facility in Africa and trails only Botswana Meat Commission in terms of the latest technologies. The company has set sights on purchasing a huge fleet of trucks for the collection of cattle as well as refrigerated trucks to ferry carcasses for exports.
CSC is an agriculture processing state owned enterprise in Zimbabwe.
The company is in the business of cattle ranching and beef processing. CSC was established in 1938 to serve the interests of small-scale cattle farmers and promote the country’s beef industry.
