• Tanganda is evaluating a voluntary ZSE delisting followed by a VFEX listing, reopening a migration plan it first pursued in 2024
• The move comes after Tanganda completed an US$8 million recapitalisation, with Rutanhi Beverages taking 54.34% of the rights offer and Innscor gaining a substantial strategic position
• The proposed migration follows a broader restructuring of Tanganda's balance sheet, ownership and management 

Harare  - Tanganda Tea Company is evaluating a voluntary delisting from the Zimbabwe Stock Exchange (ZSE) and a listing on the Victoria Falls Stock Exchange (VFEX), two years after its first attempt at the move collapsed according to the latest circular.

The proposal follows an US$8 million rights issue completed on 31 March 2026 and underwritten by Rutanhi Beverages, the beverage subsidiary 60.07% owned by Innscor Africa. Rutanhi emerged with 28.97% of Tanganda. Innscor appointees now chair the board and run the company, and Innscor consolidates Tanganda in its own accounts on the strength of that control. A migration would move Tanganda’s shares into US dollar trading and settlement on the exchange where Innscor itself is listed.

Tanganda grows tea, avocado, macadamia and coffee and bottles Tinga Mira spring water. It relisted on the ZSE in February 2022 at a market capitalisation of US$134.29 million, on a 2021 production base of 6,392 tonnes of bulk tea exports, 3,152 tonnes of avocado, 800 tonnes of macadamia and nearly 2.9 million litres of spring water. Currency instability and weaker operations cut its market value by 74% to about US$35.29 million by December 2024.

Revenue fell 26% to US$19.18 million in the year to September 2025, and a US$1.37 million profit became a US$4.24 million loss. Bulk tea production fell 11% to 7,245 tonnes, avocado output fell to 2,080 tonnes and macadamia to 1,167 tonnes, on lower yields, weaker international prices and higher electricity costs. A working capital deficit dating from the Covid 19 period reached about US$6.36 million and starved the estates of fertiliser, chemicals, fuel and packaging. Inputs withheld in one season cut the yields of the next, so the shortage compounded itself.

Tanganda first paired the VFEX migration with a raise of about US$7.7 million in 2024, then shifted to a secondary VFEX listing through a new class of shares, and finally dropped the VFEX element and raised US$8 million on the ZSE. The exchange served as a fundraising route in that attempt. The 2026 proposal comes after the capital has been raised and a controlling shareholder is in place. Innscor has settled the funding question, and the migration now serves ownership and currency alignment.

About US$6.36 million of the US$8 million, or 80%, went to closing the working capital deficit. About US$1.18 million, or 15%, went to new assets, made up of US$350,000 for the Tinga Mira water plant, US$330,000 for solar reticulation and grid connection, US$340,000 for a modular macadamia cracking plant and US$160,000 for beverage trucks. Existing shareholders took up 45.66% of the offer, and Rutanhi absorbed the remaining 54.34%, about US$4.35 million. Minority shareholders who did not follow their rights handed the company to its underwriter at the bottom of its operating cycle.

Cash rose to US$5.18 million at 31 March 2026 from US$519,561 six months earlier, and shareholders’ equity rose to US$24.80 million from US$19.0 million. Tanganda still lost US$2.20 million in the half, operating activities consumed US$3.29 million of cash, interest-bearing debt reached US$8.23 million and net finance costs rose 88% to US$732,957. Net debt stood at about US$3.05 million. The March cash balance covers roughly nine to ten months of operations at the first-half burn rate before the company needs new borrowing, so the recapitalisation bought time measured in seasons.

Packed tea volumes rose 18% in the half, beverage operating profit rose 48%, avocado production rose 95% and coffee export volumes rose 45%. Bulk tea production stayed 28% below the comparable period across the nine months to June 2026, and the rise in export sales came from inventory carried forward from earlier production, a source that runs out. Innscor warned in its 24 September results that the avocado and macadamia harvests due in the September quarter face an exceptionally poor outlook for yield and quality and will hurt Tanganda’s results for that period. Downstream processing and beverages are recovering faster than the estates, and the full year to September 2026 will carry the weakest part of the crop cycle.

Macadamia and avocado plantations remain below full maturity, so Tanganda carries their maintenance and capital costs for several more seasons before they reach full production. The avocado oil plant gives lower-grade fruit a value-added outlet. Solar installations of 4.4MW across the estates can lower irrigation and processing costs once the grid connection funded by the raise is complete.

Innscor reports in US dollars, lists on the VFEX and now consolidates Tanganda as a subsidiary. Its economic interest in Tanganda is about 17%, the product of its 60.07% holding in Rutanhi and Rutanhi’s 28.97% stake, so roughly five-sixths of Tanganda’s economics sit outside Innscor and control sits inside it.

A VFEX listing aligns the subsidiary’s share currency with the parent’s and places Tanganda in the US dollar market that TSL and other large counters have chosen. The move also concentrates decision-making with a shareholder that holds a minority of the equity.

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