AICO Africa Limited’s plans to dispose part of its shareholding in Olivine and seed producing company SeedCo will be concluded by year end, a company official has said.
Report by Business Reporter
AICO hold a 49,3% stake in Olivine and 50,14% in SeedCo.
The company’s group chief executive officer Patrick Devenish told an annual general meeting last week that Olivine Industries continued to struggle and required working capital, while SeedCo needed enhancement in expertise, capital and technology.
“Negotiations are at an advanced stage and we are in the process of conducting a due diligence. The transaction will be concluded by late November to early December,” Devenish said.
He said the group would dispose part of its stake in SeedCo to a global seed house.
Devenish said the seed house was expected to bring capital, expertise and technology for the expansion of its operations particularly in East and West Africa.
He said Aico was close to concluding negotiations for the restructuring of the group, adding that once funds were injected into Cotton Company of Zimbabwe (Cottco), the company would be fully operational.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
“The group is in talks with three of the companies to get new shareholding on board and this will result in recapitalisation of two of our subsidiaries,” Devenish said.
He, however, said Cottco would post a loss for the year ended March 31 2014.
“For so many years we have seen that Cottco is not fully capitalised and once it is capitalised, it will return to profitability,” he said.
He said production of cotton had declined to 145 000 tonnes as compared to a targeted projection of 250 000 tonnes.
AICO for the past three and a half years had been issuing cautionary statements that the group was contemplating a series of transactions to enhance shareholder value.
