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Business Reporter

BORDER Timbers Limited (BTL) shareholders have voted in favour of the company’s takeover by Cicada Plantations Zimbabwe (Private) Limited (CPZ), an entity with diverse interests in the agricultural sector.

At the extraordinary general meeting (EGM) held on Monday, shareholders gave the green light for the takeover transaction while about 0,8 percent voted against or abstained from the process.

BTL along with its subsidiary companies will be acquired by CPZ, which intends to list on the Victoria Falls Stock Exchange (VFEX) within the next 24 months of the transaction.

Cicada will acquire 100 percent of the issued share capital of Border Timbers Limited by means of a share swap at a swap ratio of 1 new Cicada ordinary share for every 1, 1079 Border ordinary shares held.

This will result in the issuance of 38 758 568 new CPZ shares to the BTL shareholders.

Initially, in July this year, CPZ hinted at acquiring 100 percent of the issued share capital of Border Timbers Limited and 100 percent share capital of Makandi Estates, a complementary agricultural concern, in exchange for CPZ shares.

This will give CPZ the opportunity to grow its operations into the forestry and nut production areas, a position that will likely diversify the company’s operations and avail fresh revenue streams.

Makandi Estates is a privately held agricultural concern that produces macadamia nuts and Avocados.

Recently Border Timbers said it had recorded poor output and weak sales for the third quarter to March 31, 2023 due to obsolete equipment and constant breakdowns, causing a sharp decline in the company’s growth and performance.

“Border Timbers Limited has passed the terms and conditions of the proposed Offer made by Cicada Plantations Zimbabwe (Private) Limited to the Border Timbers Limited shareholders to acquire up to 100 percent of the issued share capital of Border Timbers Limited by means of a share swap at a swap ratio of 1 new Cicada Plantations Zimbabwe (Private) Limited ordinary share for every 1,1079 Border Timbers Limited ordinary shares held, resulting in the issuance of 38,758,568 new CPZ shares being issued to the shareholders of Border Timbers Limited,” said Border Timbers Limited in an announcement extraordinary general meeting results.

“With the result that Border Timbers Limited shareholders who accept the offer will become shareholders in Cicada Plantations Zimbabwe (Private) Limited and Border Timbers Limited may become a subsidiary of Cicada Plantations Zimbabwe (Private) Limited.”

CPZ possesses expansive farmland which is under various crops and has been expanding its operations. It has a huge presence in Zimbabwe’s eastern province where it has over 1 000 hectares under macadamia nuts at its two estates, a lucrative venture with prospects to earn millions of dollars in foreign currency for the country.

According to Border Timbers, the CPZ offer will be implemented in three stages, namely the primary offer, the secondary offer.

After the publication of Border Timbers EGM resolutions on Wednesday, 30 August 2023, it will open its primary offer on Monday, 4 September 2023 up to Monday, 25 September 2023.

Primary Offer Results will be released on Wednesday, 27 September 2023 followed by Border Timbers Limited delisting from the Zimbabwe Stock exchange (ZSE) on  November 3, 2023.