Tanganda Tea proposes US$8M renounceable rights offer to fix working capital gap
Rights issue aims to fund operations, capital upgrades and stabilise Tanganda Tea’s balance sheet.
ZIMBABWE – Tanganda Tea Company Limited has notified shareholders of a proposed Renounceable Rights Offer aimed at raising about US$8 million in new capital to stabilise operations and support future growth.
In a circular to investors, the company said the funds would help address a working capital deficit of US$6.36 million, which it said had been worsened by difficult economic conditions, lingering effects of the global pandemic and adverse weather linked to the El Niño phenomenon.
The board is proposing the issue of 263,821,324 new ordinary shares under the offer. Existing shareholders will be entitled to subscribe for one new ordinary share for every 0.9896 ordinary shares currently held.
The subscription price has been set at US$0.0303 per share, representing a 10% discount to the company’s 30-day volume-weighted average price as at 24 July 2025. According to the circular, the pricing is intended to encourage broad shareholder participation.
“The capital injection is crucial for financing working capital requirements, funding critical capital expenditure and ensuring the company can capitalise on future growth opportunities,” Tanganda Tea said.
The company said the proceeds will be used to procure essential inputs for tea and bottled water production, settle key supplier debts and replace an ageing water bottling plant.
Additional allocations will go toward grid-tying existing solar power plants to improve energy efficiency and establishing a modular macadamia cracking unit to enhance value addition.
Tanganda warned that shareholders who do not exercise their rights will experience dilution of approximately 50.26% of their proportional shareholding.
However, because the offer is renounceable, shareholders who do not wish to participate may sell their rights, known as Letters of Allocation, on the Zimbabwe Stock Exchange during the trading period.
Following completion of the transaction, the company projects its net asset value per share will adjust from US$0.091 to US$0.051.
The directors said they had “unanimously concluded that the Rights Offer is in the best interests of both the company and its shareholders,” adding that the move is necessary to strengthen the balance sheet and support strategic initiatives.
The Renounceable Rights Offer will open at 0900 hours on Tuesday, 24 February 2026, and close at 1600 hours on Tuesday, 17 March 2026.
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