Michael Tome Business Reporter
Padenga Holdings says it is still considering a transaction that will see it diversify and grow its exports to complement the traditional crocodile skins and meat business, which already is mainly export centric.
The Zimbabwe Stock Exchange (ZSE) listed crocodile breeding company released a further cautionary announcement yesterday reiterating an earlier statement it made in early last month.
“Shareholders are advised that, further to the Cautionary Announcement published on April 9, 2019, Padenga Holdings Limited is still considering a proposed transaction to diversify its business through investment into an alternative export oriented business.
Padenga said diversification will not dilute existing shareholders of Padenga Holdings. Padenga is on record having indicated plans to venture into agriculture, with particular interest towards avocado and macadamia production in the eastern highlands of Zimbabwe, Manicaland Province.
The macadamia and avocado business has great returns and experts say this would enhance Padenga’s earnings, already into exports of crocodile skins for luxury brands in Europe. Currently In Zimbabwe, the avocado and macadamia business is dominated by Ariston and Tanganda, which just like Padenda, are listed on the country’s main bourse, ZSE.
Broadening of the firm’s exports base would enhance the crocodile breeder’s profitability given currently growing restrictions on the sales volumes for crocodile skins where the company’s sole buyer can take approximately 46 000 skins per annum.
The major destination markets for Zimbabwe’s avocado exports in 2016 were Netherlands, United Kingdom, France and Germany accounting for 68,3 percent, 13,4 percent, 9 percent and 6,6 percent respectively earning the country $4,2 million in exports.