[2008-08-19]  Shareholders approve Cottco restructuring
THE Cotton Company of Zimbabwe shareholders last week approved the company’s restructuring which will see the establishment of a holding company called AICO Africa Limited.

Cottco will delist from the Zimbabwe Stock Exchange next week while AICO will be listed in its place on September 1.

The current Cottco shareholders will receive two AICO shares for every three Cottco shares held.

Cottco’s entire shareholding in its various subsidiaries and associate companies will be transferred to AICO.

The subsidiaries will include Olivine Holdings, Zimbrano Investments, Cottco, Cottco International, Seed Co, Toray Knitting, Scottco and Exhort Enterprises.

Cottco said the restructuring would reflect the size and diversified nature of the company.

"The transaction will create a group structure that fully reflects the size and diversified nature of the company as basis of underwriting shareholder value, re-rating of the company and its share prices," said Cottco.

The company traded at $31 on the ZSE by the close of yesterday trading.

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 a 49 percent stake in Olivine, a major player in the fast moving consumer goods industry.

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 2008, the group achieved a 525 000 percent revenue growth.

Source: The Herald