Aico Africa set up for top management shake-up

Published: 02 December 2013

Aico Africa Limited is set for a top management shake-up as part of ongoing unbundling, with the chief executive and finance director expected to be on their way out.

Chief executive Mr Pat Devenish and finance director Mr Ben Mudzimuirema will not be part of the standalone entity, Cottco Holdings, to emerge from the unbundling of holding group AICO and will receive packages upon completion of the process.

Mr David Machingadize, managing director of the Cotton Company of Zimbabwe, AICO's 100 percent owned subsidiary, is also expected to step down. This comes a week after the group recalled directors it had seconded to the boards of its subsidiary companies.

Apart from Cottco, AICO is a 49 percent shareholder in FMCG company, Olivine Industries.

According to a circular published on Friday, the proposed unbundling involves disposal of AICO's 49 percent stake in Olivine and distribution of the proceeds to shareholders.

AICO is also proposing disposal of 20 546 096 of Seed Co shares to Vilmorin & Cie as part of first tranche share placement at $0,9925c for a total consideration of $20,4 million and a rights offer-to bridge a funding gap and allow for unbundling following the sale of a portion of Seed Co shares and the disposal of Olivine

The rights offer is being proposed to raise a capital amount of $15,1 million at a subscription price of $0,0270, on the basis of 105 new ordinary shares for every 100 ordinary shares already held.

The management has proposed to sell excess non-core assets of Cottco to raise an additional $4,5 million and distribution of AICO's remaining shares in Seed Co through a dividend-in-specie on the basis of 60,97 Seed Co shares for every 1 000 AICO shares.
- herald

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