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.
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