[2008-07-25]  Cottco seeks approval to change name
THE Cotton Company of Zimbabwe, a locally listed agro-processing company is seeking shareholders approval to change its trading name to AICO Africa Limited.

As exclusively reported by this paper last week, Cottco, the largest agriculture company in terms of market value said in a statement to shareholders yesterday it "shall become a wholly owned subsidiary of the new company."

The shareholders meeting would be held on August 15. According to the company, the existing shareholders would get two AICO shares for every three they currently hold in Cottco.

Analysts said the value of the shares would remain the same. But Cottco has "a lot of floating shares and reducing then to two will make them solid."

Cottco entire shareholding in its various subsidiaries and associate companies would be transferred to AICO Africa Limited. Cottco holds 49 percent in Olivine Holdings and 50,88 percent in seed company, Seed Co.

It wholly owns a fresh vegetable entity Frupac International and Scotco.

Cottco share traded lost 13 percent to $125 billion in ZSE morning trade.

Having been fully privatised in 1994, Cottco listed on the domestic bourse in 1997 and the group managed to conclude successful acquisitions.

In August last year, it paid US$6,8 million to gain 49 percent49 percent stake in Olivine, a major player in fast moving consumer goods.

The company also acquired operating assets of Frupac International Zimbabwe, a frozen vegetables business situated in Ruwa, through its subsidiary, Exhort Enterprises.

In the same year, it raised its stake in Seed-Co to 50,88 percent through open market purchase.

During the financial period ended March 31 200, the group recorded 525 000 percent revenue growth.



Source: HERALD