Tanganda Tea Company, a producer listed on the Zimbabwe Stock Exchange (ZSE), has scheduled an Extraordinary General Meeting (EGM) for its shareholders to vote on a proposal to raise US$8 million in new capital through a rights offer. The company stated the funds are intended to finance the expansion of its macadamia and avocado farming operations and to procure new processing equipment.
In a notice issued to shareholders, Tanganda Company Secretary A.A. Chikasha confirmed the meeting will be held in early December. Shareholders will be asked to approve resolutions that would authorize the company’s board of directors to create and issue new ordinary shares to existing shareholders on a pro-rata basis.
According to the company’s circular, the capital raise is a key component of its diversification strategy. The funds are earmarked for several specific projects, including the development of new macadamia and avocado plantations. A portion of the proceeds will also be allocated to acquiring modern machinery for the company’s tea processing facilities.
The company’s strategy involves increasing its focus on export-oriented cash crops to complement its traditional tea business. In previous reports, Tanganda has outlined its plans to expand the land under cultivation for both macadamia nuts and avocados, which have shown strong demand in international markets.
A rights offer is a method for a publicly listed company to raise capital by offering new shares to its current shareholders, typically at a discount to the market price. The structure and final terms of the proposed offer, including the price per share and the exact ratio, are contingent upon shareholder approval at the EGM.
Tanganda Tea Company is an established agricultural business in Zimbabwe, with its primary operations in the Manicaland Province. While historically focused on the cultivation and processing of tea, the company has expanded its portfolio in recent years to include coffee, macadamia nuts, and avocados.
The outcome of the shareholder vote will determine whether the company can proceed with the proposed capital infusion. Further details on the rights offer’s timeline and subscription process are expected to be released following the EGM, should the resolutions be approved.
