[2008-09-02]  AICO begins trading on Stock Exchange
NEWLY formed agro-processing conglomerate AICO Africa Limited started trading on the Zimbabwe Stock Exchange yesterday after a reverse listing that resulted in the delisting of the Cotton Company of Zimbabwe.
AICO was formed after share-holders of Cottco approved a name change that was meant to create a group that fully reflected the size and diversified nature of the company.
In its prelisting statement, AICO said of the total 1,5 billion shares, 948 436 728 ordinary shares were placed under the control of directors for the purpose of raising capital and acquisition of assets.
Apart from the ordinary shares, the company said 100 shares were on issue at the listing of the company.
It added that 529 701 277 shares were issued to former shareholders of Cottco.
The company was formed to take over the operations of Cottco and all its subsidiaries and associate companies.
The company will take over Cottco shares in Scottco, Seed Co, Olivine Holdings, Cottco International, Exhort Enterprises, Toray Knitting Mills and Zambrano.
The company announced that the rationale behind the name change was to give effect to the business' strategy of establishing a holding company through which group companies would be held.
The birth of AICO marks strategic growth that its predecessors had made over the years.
Cottco was formed out of the privatisation of the Cotton Marketing Board. The company was fully privatised in 1994 and listed on the domestic bourse in 1997.
Over the years the group managed to acquire a number of other companies. One of its major acquisitions was when it paid US$6,8 million in August last year to gain 49 percent in Olivine, a major player in the fast-moving consumer goods market.
Source: chronicle