TSL Limited (ZSE:TSL) is set to assume full control in Agricor (Private) Limited, a firm with interests in the agricultural sector, after getting the requisite approvals to tie up the deal.
The Zimbabwe Stock Exchange-listed conglomerate already holds 67,5% shareholding in Agricor, whose interests span from retailing, agricultural inputs, logistics and hardware operations.
The proposed takeover is in line with TSL’s strategy to become a regional powerhouse in the agricultural sector.
“The availability of foreign currency and appropriately priced financing will assist in taking advantage of the existing growth opportunities.
“The group received approval from the Reserve Bank of Zimbabwe to buy out a minority shareholder in Agricor (Private) Limited resulting in the group wholly owning the business,” TSL chairman Anthony Mandiwanza said in the group’s results for the year ended October 31, 2021.
“The group continues to pursue its ‘moving agriculture’ strategy in a difficult operating environment and to invest accordingly to create and preserve shareholder value.
“The group continues to explore strategic partnerships both locally and regionally to enhance its market presence,” Mandiwanza added.
The TSL chairman said the Agricor transaction was expected to be completed in the 2022 financial year.
Agricor is the only unit in which TSL does not have full control.
TSL’s interests span across sectors, including real estate, agriculture, logistics, and services.
The announcement comes as TSL’s agricultural interests reported a 13% increase in revenue for the group to $3,82 billion during the review period, from a prior year comparative of $3,38 billion.
“The group achieved good volume growth across most business units.
“Inflation adjusted revenue for the year is up 13% on prior year attributable to improved performance by the agriculture-based business units,” Mandiwanza said.
“A significant portion of group revenue was generated in foreign currency which is converted and reported in Zimbabwe dollars using the official exchange rate,” he added.
TSL posted a profit of $618,64 million for the period under review from a 2020 comparative of $470,97 million.
Tobacco Sales Floor saw a 62% increase in volumes to 24,3 million kg in the year under review from a 2020 comparative of 15 million kg.
Meanwhile, TSL’s tobacco hessian wraps and paper business, Propak Hessian (Private) Limited, reported a 15% increase in volumes.
Mandiwanza said TSL’s farming chemicals unit, Agricura, also achieved volume growth due to increased market share, stock availability and attractive pricing on locally manufactured
goods.
“Ongoing plans to expand and improve the group’s infrastructure are underway with construction anticipated to commence at one of the group’s strategically-located warehouses. This construction of an additional 9 000 square metres of warehousing is anticipated to kick-start in the 2022 financial year,” Mandiwanza said.
