Oliver Kazunga, Senior Business Reporter
LISTED agro-industrial firm, Ariston Holdings Limited, is seeking permission from shareholders to provide loans to its Employee Share Ownership Trust (ESOT) as part of the group’s initiative to empower the workers.

In a notice to shareholders ahead of the upcoming annual general meeting scheduled for July 7, 2020, the group said it wants as a special resolution the company: “be and is hereby authorised to make any loans to the ESOT or to enter into any guarantee or provide security in connection with any loans to the ESOT, at a market related interest rate to be determined by the directors from time to time, for the purpose of enabling the ESOT to exercise the options granted to it by the shareholders of the company in terms of the special resolution of 30th March 2017, subject to the provisions of the Companies and Other Business Entities Act (Chapter 24:31) Section 123 (1) (a) and (b).”

In March 2017, Ariston approved the creation of the ESOT and granted to it 10 year options for 320 159 119 ordinary shares in the company as a means of empowering its employees and aligning their interests with that of the shareholders.

The firm has noted that without its financial assistance, the ESOT may not be able to raise the funds required to exercise the options, thus jeopardising the strategic empowerment objective.

“The terms of the financial assistance shall be value accretive rather than value diminutive to the shareholders,” it said.

The agro-industrial company operates six business centres in four strategic business units around Zimbabwe.

The firm is arguably the most diversified agro-industrial concern listed on the Zimbabwe Stock Exchange.

Its business interests span a variety of crops including tea, macadamia, banana, apples, peaches, potatoes, tomatoes, peas, maize, soya beans and has poultry and beef cattle projects. The operations of the tea growing units are fully integrated with the Blended Tea Factory for value addition of tea. — @okazunga.