Listed diversified concern Padenga Holdings Limited, known for its crocodile farming and leather production, has announced plans to acquire the remaining 49.9% stake in Dallaglio Investments (Private) Limited, a mining company.
By Ryan Chigoche
The acquisition follows the success of Padenga’s initial investment in Dallaglio’s mining operations. After acquiring a 50.1% stake in 2019, Padenga made substantial investments to enhance Dallaglio’s gold mining activities. These efforts have resulted in significant growth in operating profits, largely driven by the gold mining business.
Encouraged by these positive financial results and growth prospects in the gold sector, Padenga’s board has decided to pursue the full acquisition of the remaining 49.9% stake—marking a strategic move to further consolidate its position in the lucrative gold mining industry.
To facilitate this acquisition, Padenga will issue just over 253 million new ordinary shares on the Victoria Falls Stock Exchange (VFEX).
Padenga initially acquired a controlling 50.1% stake in Dallaglio in 2019 as part of its strategy to diversify beyond its core crocodile skin business. This acquisition was made through a US$19.9 million capital injection.
In an official statement, Padenga confirmed that VFEX had approved the listing and allotment of 253,003,361 additional shares, which will be exchanged for the remaining 49.9% of Dallaglio’s issued shares.
The company highlighted that its interest in the gold mining sector is driven by the industry’s long-term potential, supported by global gold demand and its ability to generate foreign currency.
The initial investment in Dallaglio and subsequent improvements in its operations have significantly boosted Padenga’s operating profits, primarily due to the success of Dallaglio’s gold mining activities.
Following this success, Padenga’s board determined that further investment in Dallaglio was necessary. In August 2023, an extraordinary general meeting (EGM) was held, where Padenga shareholders approved the acquisition of the remaining 49.9% stake in Dallaglio.
At the EGM, shareholders also passed a special resolution to increase Padenga’s authorized share capital from 800 million to 1.4 billion to accommodate the new shares required for the share swap.
Additionally, an ordinary resolution was approved to issue and allot 253,003,361 shares in Padenga to Dallaglio’s minority shareholders, representing 46.04% of Padenga’s issued and outstanding shares.
