Published: 14 April 2014

ZSE-listed agro-industrial concern Chemco's shareholders have approved a debt-to-equity swap with parent company TSL Holdings.

In a notice to shareholders today, the company said TSL will compulsorily acquire the shares of minority shareholders who had not yet accepted the offer.

"Shareholders are advised that approximately 93,23 percent of Cemco minority shareholders have accepted the share swap offer from TSL.

"Accordingly, the board of Chemco and TSL hereby give notice to Chemco minority shareholders who are yet to accept the offer that TSL will now compulsorily acquire their shares in terms of Section 194 of the Companies Act (Chapter 24;03)."

The debt-to-equity swap is aimed at retire Chemco's debt to TSL. To support its operations over the last three years, Chemco borrowed $2,3 million from financial institutions and its major shareholder. Of this debt, $1,983,541 is owed to TSL, which was provided to the company in the form of a shareholders loan with an interest rate of eight percent per annum.

The remainder of the debt is a $327, 000 bank facility. As indicated in an earlier circular, Chemco should now delist from the ZSE.

Chemco's debt conversion and private placement is up for up to $2,641,220 worth of debt and trade payables that will be converted into Chemco shares at a price of $0,17 per share, resulting in an issuance of 15,536,588 Chemco shares.
- BH24

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