Online Reporter
Business Reporter
Clothing retailer Edgars Stores Limited has unveiled plans to voluntarily delist from the Victoria Falls Stock Exchange (VFEX), arguing that the costs and constraints of remaining publicly listed now outweigh the benefits as it seeks to reposition itself in an increasingly competitive retail environment.
The proposal, which will be tabled before shareholders at an Extraordinary General Meeting on August 27, will be accompanied by a cash offer from the company’s largest shareholder, Annunaki Investments (Private) Limited, to purchase shares held by minority investors at US$0.0248 per share before the company exits the bourse.
Edgars said the move reflects a strategic shift rather than financial distress, with management believing that operating as a privately held company would provide greater flexibility to execute its long-term growth strategy.
The retailer said maintaining a public listing had become increasingly difficult to justify, particularly as Zimbabwe’s retail sector continues to be reshaped by the rapid expansion of the informal market and changing consumer behaviour. The company believes an unlisted structure will allow quicker decision-making, more efficient execution of corporate actions and lower compliance costs.
Board chairman Mr Thembinkosi Sibanda said the company remained confident about its future despite seeking to leave the exchange.
“In a retail landscape increasingly shaped by the growth of the informal sector, the Board believes that the obligations and cost structures associated with maintaining a public listing are increasingly difficult to justify in the absence of a near-term requirement to access public equity markets,” he said.
“Unlisted, the Company will have greater operational flexibility, more agile decision-making, more efficient execution of corporate actions, and the ability to respond more rapidly to market dynamics while consolidating its market share. The resources released from regulatory and compliance costs will be redeployed towards investment in the Company’s store footprint, merchandising, and customer experience.”
The company said delisting would also allow management to focus more on long-term value creation without the short-term performance pressures associated with public markets, while strengthening engagement with financiers and strategic partners.
For minority shareholders, the proposed transaction offers a structured exit opportunity through the cash offer by Annunaki Investments.
The offer price of US$0.0248 per share will be available to shareholders from August 28 to September 18, subject to shareholder and regulatory approvals. Shareholders who accept the offer will receive cash for each share tendered, with settlement expected after completion of the transaction.
Edgars said the offer provides shareholders with an opportunity to unlock value in a market where trading activity has remained subdued.
According to the circular, only 4,75 percent of the company’s issued shares traded on the VFEX during the 2025 calendar year, representing transactions worth just US$474 142, or an average of approximately US$1 920 per trading day. The board said the limited liquidity made it increasingly difficult for investors wishing to dispose of their holdings through the market.
The company also highlighted that shareholders accepting the offer may benefit from the capital gains tax exemption applicable to VFEX transactions, a benefit that would no longer apply once the company becomes unlisted.
Edgars, which traces its roots to 1946 and has been listed since 1974 before migrating from the Zimbabwe Stock Exchange to the VFEX in 2024, currently operates 71 stores nationwide through its Edgars, Jet and Express retail chains. The group also owns Carousel Manufacturing and the Club Plus microfinance business.
The board said shareholders choosing not to accept the offer would continue holding shares in an unlisted public company. It has appointed IH Securities to assess the establishment of an over-the-counter trading mechanism that could facilitate future trading of Edgars shares after the delisting.
leeroy