Seed producer, Seed Co Limited is set to resume trading on the Zimbabwe Stock Exchange (ZSE) on Monday, an executive with the local bourse confirmed.
The latest development comes after the group shelved plans to merge Seed-Co Limited with Seed-Co International Limited (SCIL), which trades on the Victoria Falls Stock Exchange (VFEX).
The Reserve Bank of Zimbabwe did not approve the transaction, meaning SCIL and SCL will continue to operate as two separate companies, listed on the VFEX and ZSE, respectively.
“The Zimbabwe Stock Exchange Limited hereby notifies the investing public of the resumption in trading of Seed Co Limited shares on the ZSE trading platform with effect from Monday 21 June 2021,” ZSE chief executive officer,Justin Bgoni, said.
He added: “The ZSE sought and was granted permission by the Securities and Exchange Commission of Zimbabwe to resume trading in the shares of Seed-Co.”
Seed Co applied to voluntarily terminate its listing on the ZSE in March this year. However, SICL failed to fulfil one of the conditions precedent to the completion of the transaction
“ZSE noted that Seed-Co no longer met the minimum free-float for a listed company defined in section 87(d) of the ZSE’s Listings Requirements since SICL had acquired circa 95 percent of Seed-Co and was now pursuing drag-along provisions,” he said.
“However, SICL could not fulfil one of the conditions precedent to the completion of the transaction.
“Resultantly, Seed-Co has withdrawn the application for delisting and will revert to the status quo as the contemplated transaction has been abandoned.”