Published: 01 October 2013

AICO Africa Ltd could receive $48 million for the sale of its 20 percent shareholding in SeedCo to a United Kingdom based seed company Limagrain, a premium of more than 48 percent of the seed firm's current value.

AICO owns about 50 percent in Seed Co. Sources familiar with the deal said Aico and Limagrain agreed on $240 million as the value of SeedCo. However, the agreed value is subject to variations after final assessment of the business. Limagrain hopes to gain a foothold in the southern Africa seed market through the acquisition of a stake Seed Co.

In the region, SeedCo already has operations in Malawi and Zambia as well as Tanzania in East Africa.

"The completion of the deal is now closer and some formal announcements will be made soon," said one source.

Seed Co has been trading under cautionary since June 27 this year. Its share value has fallen 3,5 percent since then.

AICO chief executive Mr Pat Devenish said in an interview yesterday: "we are now attending to regulatory issues and once we are done, we will publish a circular to shareholders" in the next two weeks.

He however, refused to shed light on the value of the proposed a transaction because the matter was "confidential."

AICO intends to use the money realized from transaction to finance some operations under the group's stable, group chairman Mr Innocent Chagonda said.

Apart from 50 percent it owns 50 in Seed Co, the group also owns 100 percent in The Cotton Company of Zimbabwe and 49 percent in Olivine Industries.
- herald

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