Listed crocodile skin manufacturer is looking to acquire a yet unnamed “alternative export oriented business” as it looks to expand its portfolio.

With a current Zimbabwe Stock Exchange (ZSE) market capitalization of circa $542 million, Padenga is involved in the production and sale of crocodilian skins and meat.

Its segments include crocodiles and alligators. Its crocodile farming is based in Zimbabwe, while the alligator farm is based in the United States.

Padenga produces crocodile meat from its export approved abattoir for sale to European and Asian markets.

But the proposed investment will be in exports other than crocodile or alligator products.

And the company has said the proposed transaction will not affect current shareholding.

“Shareholders are advised that Padenga Holdings Limited is considering a proposed transaction to diversify its business through investment into an alternative export orientated business. This diversification will not result in dilution of existing Shareholders of Padenga Holdings Limited,” said company secretary Andrew Lorimer in a notice to shareholders.

“To this end, transaction advisors have been engaged and developments will be communicated to Shareholders in due course. In the interim, Shareholders are advised to exercise caution in dealing their Padenga shares.”

The group reported a 53 percent increase in profit after tax for the year to December 31, 2017, on the back of firming prices.

In that period, Padenga posted a profit after tax of $12,9 million for the period under review, up 52,98 percent from $8,4 million reported in the previous period.