Tanganda Eyes $7.7 Million Capital Boost with Victoria Falls Exchange Move

Tanganda Tea Company, Zimbabwe’s premier tea producer and distributor, has set its sights on raising $7.7 million while planning a shift to the Victoria Falls Stock Exchange (VFEX).

The company issued a cautionary announcement, alerting shareholders of transactions that could influence its share price, as directors prepare for an Extraordinary General Meeting.

Tanganda has confirmed active discussions surrounding two major initiatives, including a proposed move from the Zimbabwe Stock Exchange (ZSE) to VFEX.

Additionally, Tanganda aims to fundraise $7.7 million through a renounceable rights offer, underscoring its ambitions for financial expansion in a rapidly evolving market.

Shareholders have been urged to tread cautiously when trading company shares, as these transactions hold potential to impact their value significantly.

In its cautionary statement, Tanganda outlined, “A capital raise by way of a Renounceable Rights Offer to raise approximately Seven million seven hundred thousand United States Dollars.”

Further details will be disclosed in an upcoming circular, designed to provide clarity on how these transactions may reshape Tanganda’s financial trajectory.

Owned by Meikles Limited, Tanganda is known for its expansive portfolio, including bulk and packaged tea and Tinga Mira bottled spring water, as well as avocado and macadamia production.

The VFEX, with its attractive incentives like tax-free capital gains and simplified fund repatriation, has increasingly drawn interest from Zimbabwean firms, including Tanganda.

BridgeFort Capital, formerly Medtech Holdings, also recently announced its intention to migrate its Class A and B shares to VFEX through an introduction listing.

This listing method lets shares traded on another exchange be introduced on VFEX, bypassing typical marketing efforts since these shares already have a solid investor base.

Tanganda’s planned VFEX listing aligns with an ongoing trend among Zimbabwean companies leveraging the exchange’s business-friendly incentives.

The Zim Bulletin