Border Timbers Voluntarily Delists from the Zimbabwe Stock Exchange

KINGSTONE ZIMUNYA

Border Timbers Limited has voluntarily delisted from the Zimbabwe Stock Exchange (ZSE) effective 3 November, following a 100% acquisition by Cicada Plantations Zimbabwe (CPZ), an agricultural enterprise focused on the production of niche crops.

The Securities and Exchange Commission granted the bourse permission to delist BTL. In a statement, ZSE chief executive officer Mr Justin Bgoni said following the conclusion of an offer by CPZ to acquire the entire shareholding of BTL, Border Timbers Limited applied for voluntary termination of its listing on the Zimbabwe Stock Exchange Limited pursuant to Section 11 of the ZSE Listing Requirements. 

 "As required by Section 64 (1) (a)(i) of the Securities and Exchange Act [Cap24.25], the ZSE sought and was granted permission by the Securities and Exchange Commission of Zimbabwe (“SECZ”) to delist BTL from the ZSE's official list. In terms of Section 15 (d) of the ZSE Listing Requirements, holders of Border Timbers Limited's securities are hereby advised that the securities can no longer be traded on the ZSE with effect from 03 November 2023," reads part of the statement.

In early September, CPZ acquired 100 percent of the issued share capital of Border Timbers Limited and 100 percent share capital of Makandi Estates, a complementary agricultural concern, in exchange for its shares. 

 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. Currently, the timber producer has plantations on 47,886 ha of land.

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. The entity also grows 500ha of certified avocados largely for the European market. It has initiated pilot small-scale schemes in the Honde Valley and Chimanimani areas.

Border Timbers' delisting comes as no surprise. When CPZ acquired BTL (along with its subsidiary companies), they announced their intention to list the struggling timber producer on the Victoria Falls Stock Exchange (VFEX) within the next 24 months of the transaction.

It remains to be seen whether CPZ will turn the fortunes of the beleaguered timber producer. Earlier this year, Border Timbers bemoaned poor output and weak sales due to obsolete equipment and constant breakdowns. 

A massive capital injection is needed, and a listing on the USD-denominated VFEX can be the first step towards better prospects for both CPZ and BTL.