ZIMBABWE Stock Exchange-listed concern, Lifestyle Holdings, has set its eyes on Mauritius as it seeks to raise offshore financing to grow local operations and venture into other countries. REPORT BY OUR STAFF
The group, founded by businessman Tawanda Nyambirai, is restructuring by forming TN Harlequin Luxaire Limited International (TNHLI) which was incorporated in Mauritius last month. TNHLI will now own Lifestyle Holdings subject to approval from regulatory authorities.
In a draft circular sent to both the Zimbabwe Stock Exchange and Securities Commission for approval, Lifestyle said the proposed restructuring would enable the group “to access funding from foreign capital markets”.
“This funding will be used to finance the existing operations of Lifestyle Holdings Limited with long-term capital at a sustainable cost,” it said.
“The establishment of TNHLI as the new holding company will allow the company to penetrate regional markets at a faster rate as the company will avoid the Zimbabwean risk factor that has negatively affected Zimbabwean companies’ ability to establish a regional presence.”
In terms of the scheme Lifestyle, shareholders are entitled to receive one TNHLI ordinary share for every 235,12 Lifestyle ordinary shares held; or a cash consideration of US$0,00645 for every one Lifestyle ordinary share.
Zimbabwean companies have been struggling to raise foreign capital to finance operations due to the country’s perceived risk.
Local banks are constrained to offer long-term financing needed to help the rebuilding of the economy.
