Published: 28 January 2014

Zimbabwe Stock Exchange listed conglomerate, AICO Africa Limited's rights offer to raise $15 million was subscribed by 94,57 percent paving the way for the company to address its legacy debt and ultimately its unbundling, BH24 reported.

Shareholders in December approved the rights offers and a series of other transactions that were aimed at recapitalising the new entity Cottco Holdings Ltd born out of the unbundling of the conglomerate.

According to a notice to shareholders today, 530 396 515 shares out of the 560 631 770 ordinary rights offer shares were subscribed while 5,43 percent of the rights offer shares were not subscribed and would be issued to the underwriter.

The rights offer was made to shareholders as at December 20 2013 to subscribe for the new ordinary shares in the share capital of Aico at a subscription price of $0,0270 per ordinary share on the basis of 105 new shares for every 100 ordinary shares already held.

"The rights offer will be issued and listed on the Zimbabwe Stock Exchange with effect from Monday, 10 February 2014," Aico said.

The rights issue is expected to retire debt and will result in the restructuring of Aico's loans making way for the unbundling of the firm.

The Aico structure is falling away after the group found a technical partner for its subsidary Seed Co. The group is also deposing of its 49 percent in Olivine Industries.
- BH24

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