RioZim Limited has announced that negotiations with a potential investor are at an advanced stage, as the company seeks to secure a substantial capital injection and transfer of majority ownership.
In a statement released on 29 May 2025, the company revealed that its major shareholders are close to finalising a deal that would see the investor inject an initial US$20 million into RioZim’s working capital. The cautionary announcement reads:
The Directors of RioZim Limited (the “Company”) wish to advise its shareholders and the investing public that further to the cautionary announcement dated 4th March 2025, the major shareholders are now at an advanced stage in negotiating with the potential investor, who will inject an initial amount of Twenty Million United States Dollars (USD20,000,000.00) into the working capital of the Company, through an appropriate financial instrument whilst completing a purchase of the majority shares of the Company.
According to the statement, the transaction is still subject to several conditions, including the completion of due diligence, the signing of Sale and Purchase Agreements, and securing the necessary regulatory and shareholder approvals.
Once the transaction is finalised, the investor will be required to comply with Zimbabwe Stock Exchange (ZSE) rules, including making a mandatory offer to minority shareholders to purchase their shares.
In a separate development, RioZim confirmed that the Zimbabwe Diamond & Allied Minerals Workers Union has lodged an application to place the company under supervision and initiate Corporate Rescue Proceedings.
The union represents a segment of RioZim’s workforce, raising concerns about the company’s financial health and operational stability.
The company said that it has taken the necessary legal steps to address the application, but did not provide further details on the nature or outcome of its response.
Given the ongoing negotiations and legal developments, RioZim has advised shareholders and the investing public to exercise caution when dealing in its securities.
The company pledged to make further announcements in line with regulatory requirements as material updates become available.
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