Zimpapers Logo

Business Writer

TURNALL Holdings is proceeding with the rights offer to raise expansion funding after minority shareholders reached an agreement for the disposal of their shareholdings to avoid being diluted.

The company had earlier issued a rights issue proposal, but later withdrew it after some shareholders offered to sell their shares as a way of avoiding being diluted.

Minorities reached an agreement for the disposal of their shareholdings to the major shareholder who remains committed to the long-term success of the company.

“The cautionary was subsequently withdrawn in order to allow engagements to take place between company stakeholders regarding the funding of the capital expenditure programme. The company is now well placed to move forward with the rights,” Turnall said in a cautionary statement.

The transaction involved raising capital for the company’s major capital expenditure programme. Zimbabwean Brands, in July 2022, announced that it had bought a significant stake in the roofing material manufacturer.

It went on to offer to buy out minority shareholders as per the standing rules but was not successful. Despite Zimbabwean Brands increasing its shareholding in Turnall Holdings to 78,7 percent of the total issued shares, the company has vowed to remain listed on the Zimbabwe Stock Exchange (ZSE).

The ZSE requires that a single shareholder or block of shareholders who acquire more than 35 percent of securities in a listed entity make an Offer to other holders of the same securities on a basis agreed with the ZSE.

Turnall is already engaging the ZSE in order for it to remain listed. Turnall is engaged in the production of building and construction materials comprising corrugated sheeting, flat sheets, pan tiles, pressure pipes, sewer pipes, concrete roofing tiles, and related accessories.

The company operates through segments, which include building products, piping products, and concrete tiles.

The building products segment is engaged in the production of roofing sheets, flat sheets, and molded goods.

Its piping products segment is engaged in the production of water and sewer reticulation pipes. The concrete tile segment is engaged in the production of concrete roofing products.