“We are pleased to announce that TWK is the “first official listing” on the renamed Cape Town Stock Exchange (CTSE), previously 4 Africa Exchange (4AX), today. The Board has taken a decision, approved by its shareholders on 21 September 2021, to move its listing from ZAR X to CTSE as well as undertake a secondary listing on the A2X stock exchange in order to increase the liquidity and trade-ability of the share. We are listing 38 951 986 ordinary shares, by way of introduction, at R35.00 per share, which places a market capitalisation on the Company of nearly R1.4 billion.”
(TWK or the TWK Group or the Company), headquartered in Piet Retief, Mpumalanga, is an iconic institution in the South African agricultural landscape that operates mainly in Mpumalanga and KwaZulu-Natal, but with business interests in several other provinces in South Africa, as well as Eswatini. André Myburgh, CEO of TWK, stated: “We are pleased to announce that TWK is the “first official listing” on the renamed Cape Town Stock Exchange (CTSE), previously 4 Africa Exchange (4AX), today. The Board has taken a decision, approved by its shareholders on 21 September 2021, to move its listing from ZAR X to CTSE as well as undertake a secondary listing on the A2X stock exchange in order to increase the liquidity and trade-ability of the share. We are listing 38 951 986 ordinary shares, by way of introduction, at R35.00 per share, which places a market capitalisation on the Company of nearly R1.4 billion.”
From research to sustainable farming practices and agricultural innovation, TWK is not only a crucial component in the value chains of its customers, but a corporate citizen, dedicated to the future of South Africa through a never-ending commitment to sustainable development and resource consumption across a number of agri-related industries. TWK is a diversified group of businesses operating in the agriculture, forestry, grain, financial services and motor industries. The TWK Group provides jobs to approximately 3,184 employees.
Eddie Fivaz, CFO of TWK, commented: “The principal reasons for the CTSE Listing, as a primary listing, coupled with a secondary listing on A2X, is likely to enhance the ability and liquidity to trade in TWK Shares; position the Company strategically better to attract institutional investors in the near future due to open market access developments associated with CTSE and A2X; promote the Company’s ability to raise capital and list equity and debt on a single primary exchange; provide additional protection to TWK Shareholders having access to a CTSE client protection fund; and have a primary listing and envisaged secondary listing on exchanges which the Board both regard as financially sustainable in the long-term.”
TWK remains optimistic about the outlook for agriculture in South Africa. The TWK Group expects a full recovery of lost growth this year as the effect of Covid-19 subsided, market conditions improved, increased timber export sales were achieved as well as an increase in returns on new investments. This optimism was reflected in the Interim Results published on 7 April 2021 for the six months ended 28 February 2021.
Despite weak economic conditions, Covid-19 and the local unrest, the Company delivered growth in profitability and remains on track to achieve its strategic medium-term targets. The outlook for the financial year ended 31 August 2021 is promising. There is an increased demand for our woodchip exports, treated timber as well as for timber to the mining industry. The acquisition of a 51% stake in Sunshine Seedlings Services as well as the Peak Timbers forestry assets has been successfully implemented during the last financial year and should contribute to further growth.
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Myburgh concluded: “Management holds the view that the financial year ended 31 August 2021 will substantially outperform the previous year’s results. TWK remains well positioned for growth, with a focus on projects across all segments with expansions, acquisitions, mergers and strategic alliances. We will continue our efforts to optimise existing offerings. Strategic outcomes are evaluated annually, and we remain focused on delivering the Company’s strategic intent of growing profitability.”
TWK is expecting to release its Final Results for the year ended 31 August 2021 on or about 25 November 2021.