National Foods, Zimbabwe's largest and oldest food manufacturer, has become the first company to delist from the local US dollar-denominated stock exchange, which it joined in January 2023.
The company said that it no longer needs capital from public equity markets, hence its decision to exit the Victoria Falls Stock Exchange (VFEX).
In a release on November 27, National Foods further explained that delisting would allow it to concentrate on long-term objectives and redirect spending on substantial regulatory and compliance expenses to initiatives more closely aligned with its needs.
Ahead of the delisting expected to be concluded in early 2025, National Foods has offered to buy back 20% of shares from minority holders for about $23mn. The offer opens on December 20, closing on January 17, 2025.
"This move allows shareholders who prefer not to hold private shares in National Foods to exit their investments prior to the delisting. Following the completion of the offer, National Foods will proceed with the delisting, thereby transitioning to a privately held entity," it said.
Zimbabwe’s Innscor Africa and South African food giant, Tiger Brands own 75.18% of National Foods.
Launched in 2020, VFEX, permits listed companies to raise funding in foreign currency and offers tax incentives. It has 15 counters and a market capitalisation of $1.3bn.
Related Articles
Ghana ahead of IMF debt target as economic rebound gathers pace, Barclays analysts say
Ghana is on course to beat its debt reduction goals three years ahead of schedule, as strong economic growth and tighter fiscal discipline continue to ease the country’s debt burden, according to ... more
Nigeria’s oil output falls 4.37% in March, widening gap with OPEC quota
Nigeria’s crude oil production declined by 4.37% in March to 1.401mn barrels per day (bpd), further widening the gap between actual output and the country’s OPEC quota, the April OPEC Monthly Oil ... more
Equity Group, AGF seal $500mn deal to expand MSME lending across five African countries
Equity Group Holdings Plc (EGHL) and the African Guarantee Fund (AGF) have signed a $500mn risk-sharing agreement aimed at unlocking $1bn in credit for Micro, Small and Medium Enterprises (MSMEs) ... more
Most Read
-
Armenia courts African countries to supply diamond industry
21 days ago
-
Russia’s Alrosa finds its largest diamond ever, as Mirny mining operations restart
4 days ago
-
COMMENT: Embracing “Greater Central Asia” has become a strategic imperative for US
15 days ago
-
From blood diamonds to critical minerals: Sierra Leone’s mining transformation
22 days ago