COLCOM Holdings Ltd (Colcom) intends to relist its shares on the Zimbabwe Stock Exchange (ZSE) after a successful merger with the Cattle Company Holdings Ltd (CCH).
Termination of the current ZSE listing is expected on November 17 while admission of new CCH shares to the official list would be made on or before November 24. The company has a market capitalisation of $27 billion.
The Colcom chairman is Albert Hermann, while that of CCH is Bekithemba Ndebele.
Colcom yesterday sent a prelisting statement with information regarding the business of the company and the financial information regarding its combined businesses.
The company said the major reason for the merger and relisting of its shares on the bourse was to unlock shareholder value through the synergies that exist between the two groups of companies.
This would be achieved through the scheme which sought to merge the two groups of companies under Colcom and CCH by means of a share swap, whereby CCH became the owner of 100% of the issued share capital of Colcom.
As part of the scheme, the existing shareholders of Colcom would swap their current Colcom shares for a 63% shareholding of the merged CCH.
The transaction is, therefore, in the nature of a reverse takeover, with Colcom shareholders obtaining control of CCH in exchange for a dilution of their percentage shareholding in the combined businesses.
The Colcom group structure currently includes Colcom Foods (Pvt) Ltd (100%), Triple C Pigs (50%), Ballantyne Butchery (Pvt) Ltd trading as Danmeats (100%), and the Freddy Hirsch group (Pvt) Ltd (49%).
The CCH structure comprises Livestock Trading (Pvt) Ltd (100%), CC Sales (Pvt) Ltd (100%), Savannah Exports (100%), Montana Meats (Pvt) Ltd (100%), and Triple C Pigs (50%).
The merged firm will comprise Colcom Holdings Ltd (100%), CC Sales (Pvt) Ltd (100%), Montana Meats (Pvt) Ltd (100%), Savannah Exports (100%), Livestock Trading (Pvt) Ltd (100%), Triple C Pigs (50%), Colcom Foods (Pvt) Ltd, Freddy Hirsch group (Pvt) Ltd (49%), and Ballantyne Butchery (Pvt) Ltd trading as Danmeats (100%).
In terms of the scheme, participants will receive, at their election, for every 100 Colcom shares, 150 new CCH shares, or for every 100 Colcom shares, $34 000 in cash.
The company said the alternative considerations offered provided shareholders with the opportunity to elect as to whether they would receive all of the scheme consideration in cash or in new CCH shares, which election would depend on the personal circumstances of the shareholder.
Colcom said the cash option of the scheme consideration would be paid to scheme participants in accordance with the provisions made by the company in its statement.
The company said even if the scheme failed for any reason, the listing of Colcom shares on the ZSE would continue.