TANGANDA Tea Company Limited is set to list on the Zimbabwe Stock Exchange (ZSE) in early December following a spin-off from parent company, Meikles Limited (ZSE: MEIK), the two companies said in separate statements yesterday.
Zimbabwe’s most recognized tea brand said in a pre-listing statement that preliminary internal approvals were obtained in March, while the ZSE provisionally approved the proposal subject to the companies meeting certain conditions.
The deal will be put to a shareholder vote at an extraordinary general meeting set for November 18, after which Tanganda will begin trading on the ZSE.
“The proposed transaction will allow Meikles shareholders to hold a direct stake in Tanganda. A separate listing should be sought for Tanganda on the ZSE as an introduction, under the name ‘Tanganda Tea Company Limited’,” Meikles said.
In a separate statement, Tanganda said, “In this regard, the ZSE has indicated its approval, subject to the implementation of the proposed split for the admission of the entire issued share capital of Tanganda to the official list. pursuant to listing, on or about December 2, 2021.
“Upon implementation of the cash dividend, Meikles shareholders will receive their pro rata share of 100% of the Tanganda shares currently held directly by Meikles.”
“Subject to the completion of certain formalities, the Listing Committee of ZSE approved on October 11, 2021 the distribution of the Abbreviated Statement (Pre-Listing Statement), the Full Pre-Listing Statement as well as the listing of the ‘entirely issued share capital of Tanganda,’ the statement added.
Tanganda is one of the leading tea processing companies in the country and produces the popular Tanganda Tea brand on sprawling prime estates in the eastern districts of Zimbabwe.
Despite its massive operation spanning more than eight decades, the company had been indirectly listed through its influential parent company, Meikles.
Tanganda is one of many top Zimbabwean brands that may be ripe for public listing to reach their full potential.
In 2019, Tanganda’s chief financial officer, Henry Nemaire, revealed that the company had been saved from collapse after an overhaul of its business model from 2010 before recovering to regain its position, concluding agreements of millions of dollars, thanks to management’s quick response.