Padenga Mulls Share Consolidation Post-Dallaglio Takeover

By ETimes

HARARE – PADENGA Holdings shareholders have urged the board to consider share consolidation following its full acquisition of Dallaglio, a key Zimbabwean mining operator, but the company says debt repayment remains the priority for now.

Padenga’s strategic shift commenced in 2019 when it acquired a controlling 50.1% interest in gold miner Dallaglio.

The mining portfolio of Dallaglio Investments includes strategically important Zimbabwean assets such as the Pickstone-Peerless gold operation in Chegutu district and the Eureka Gold Mine located near Guruve.

During Padenga’s 14th AGM at Royal Harare Golf Club, shareholders raised the possibility of share consolidation following the company’s complete acquisition of Dallaglio. The discussion reflected shareholder interest in maximising value and assessing the impact of recent acquisitions.

Responding to shareholder queries, Padenga Holdings chief executive officer Michael Fowler acknowledged the significance of the issue but emphasised the company’s current priorities.

“If I can try to answer, I think that we have recently done a purchase and issued more shares. I think in line with what the Chairman said, for now our focus is to pay back borrowings, and we’ll consider consolidation at the right time,” he said.

Sibanda echoed Fowler’s stance but assured shareholders their concerns were noted: “That is what we are thinking, but we hear you.”

When pressed further, Fowler deferred to the Chairman on the meeting’s agenda, to which Sibanda responded: “We will consider it. Thank you.”

With debt repayment as the current focus, consolidation remains a possibility for future consideration—pending further evaluation of market conditions and share performance.

Sibanda later elaborated on the broader considerations affecting consolidation.

“As I said, remember where we were before we bought Dallaglio and where the shares are trading at today’s date. Whether at this point in time we can start saying the share is undervalued, I am not sure.

“It depends on why you are buying shares. Some people buy shares because they want to quickly take their profits, others buy because they want to receive dividends. But it’s something to look at,” he said.

The company reported no material changes from its last update, maintaining its positive operational performance.