ONE of the country’s largest agricultural entities, Cicada Plantations Zimbabwe (CPZ) has offered to acquire 100% of the issued share capital of Border Timbers Limited (BTL), NewsDay Farming can report.
The firm simultaneously made an offer to acquire 100% of the issued share capital of Makandi Estates, a complementary agricultural concern, in exchange for its shares, BTL said in a cautionary statement yesterday.
“Shareholders of Border Timbers Limited and the investing public are advised that the company received an offer from Cicada Plantations Zimbabwe (Private) Limited, an agricultural entity, whereby CPZ seeks to acquire 100% of the issued share capital of BTL, and simultaneously make an offer to acquire 100% of the issued share capital of Makandi Estates (Private) Limited, a complementary agricultural concern, in exchange for CPZ shares,” partly read the BTL statement.
“The directors will communicate their recommendation to shareholders in due course. Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities. Further announcements will be made in accordance with regulatory requirements as and when there are material developments.”
The statement, however, did not disclose the value of the offer.
CPZ’s agricultural footprint spans across the east of Zimbabwe, covering over 6 000 hectares (ha) of land directly under its management. This area is uniquely positioned in terms of rainfall, rivers and altitude to produce high value horticultural exports.
It grows over 1 000ha of macadamia at its two estates with a pilot outgrower scheme in the Gairezi area. Ultimately, the firm expects to produce 3 000 to 5 000 tonnes of macadamia per year.
The entity also grows 500ha of certified avocados largely for the European market, of which 100ha are mature.
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It has initiated pilot small-scale schemes in the Honde Valley and Chimanimani areas.
It targets an annual production of 10 000 tonnes by 2030.
BTL is in the business of growing, milling and manufacturing timber from plantations.
The company was incorporated in 1979 through the amalgamation of three companies, Border Eastern Forest Estates, Renfee Timbers and Forestry Management Services. Forestry Management Services had taken over plantations that were first established in the Imbeza area by the British South African Police Company (BSAP Co) in 1924. BSAP Co increased plantings substantially in 1946 after the Second World War to include the Chimanimani area. Since 1979, BTL has grown the plantation size to the current 47 886ha.
BTL is a subsidiary of the Rift Valley Corporation and is listed on the Zimbabwe Stock Exchange.
