Padenga eyes 100% ownership of Dallaglio

BUSINESS REPORTER

Padenga Holdings Limited is set to wholly own Dallaglio Investments with plans to acquire the remaining 49.9% stake in the gold producer as it seeks to grow the balance sheet and raise capital for expansion.

Padenga controls the gold producer with a 50.1% shareholding.

In a circular to shareholders, Padenga said it would buy the 49.9% stake by issuing 253,003,361 ordinary shares to Dallaglio minorities. The transaction requires approval from shareholders who meet at an EGM on August 16.

Padenga said the acquisition of a 49.9% shareholding in Dallaglio would result in full (100%) control of its operations, which would be beneficial to Padenga.

“Dallaglio’s profits would fully accrue to Padenga’s Shareholders, thus increasing Padenga’s earnings per share,” it said.

“Following the proposed restructuring, Padenga would have a larger asset base and a stronger balance sheet, which can be leveraged to raise funding for business expansion.”

Padenga said the acquisition of the remaining issued shares in Dallaglio would result in the combined entity trading at a higher value on the Victoria Falls Stock Exchange.

In 2019, Padenga acquired 50.1% of the issued share capital in Dallaglio, which holds and operates gold mining assets.