THE SeedCo Group has moved to abandon plans to bring Seed-Co Limited (SCL) under the broader entity — Seed—Co International (SCIL) — after failing to get all the regulatory approvals.
The transaction would have seen the Zimbabwean subsidiary shifting to the US dollar-denominated Victoria Falls Stock Exchange (VFEX).
But the abandonment means SCL will resume trading on the Zimbabwe Stock Exchange (ZSE).
Shareholders approved the transaction earlier in March, but the External Loans and Exchange Control Review Committee turned down the proposal that same month, as well as an appeal on June 8.
“Approval for the transaction was declined by the External Loans and Exchange Control Review Committee on 26 March 2021.
“An appeal against the decision was made on 7 April 2021 and the External Loans and Exchange Control Review Committee upheld the decline decision on 8 June 2021.
“Pursuant to this adverse regulatory decision, SCIL and SCL have no option but to abandon the contemplated consolidation transaction and revert to status quo,” said SCL and SCIL in a joint statement.