malvernmugadzikwa
Business Reporter
Zimbabwe’s largest diversified group Innscor Africa is set to migrate its shares to the Victoria Falls Stock Exchange (VFEX) as the company’s Board has already approved de-listing from the Zimbabwe Stock Exchange (ZSE).
The VFEX is offering a raft of incentives including tax exemptions on capital gains and the ability to repatriate funds from a country where foreign exchange is in short supply to attract global capital.
In a notice to shareholders, Innscor said further details of the transaction will be provided to shareholders and the investing public once all regulatory processes have been finalized.
“Shareholders are therefore advised to exercise caution and consult their professional advisers when trading in the Company’s shares,” the group said.
The regulatory processes include approval by shareholders and regulatory authorities such as the Securities and Exchange Commission of Zimbabwe (SECZim).
Innscor’s operations span various sectors of the economy. The group engages in food processing and the manufacture, distribution and retailing of household commodities and fresh produce.
It operates through segments: Milk-Bake, Protein, Light Manufacturing Services, and Head Office Services.
The Milk-Bake segment focuses on bakery division, National Foods, and non-controlling interest in Profeeds while the protein segment comprises Colcom, Irvine’s , Associated Meat Packers, Texas Meat and Texas Chicken.
The Light Manufacturing segment involves in the production of stock feeds, edible oils, and bakers’ fats, sale of other general household products; the production, processing and marketing of pork and related food products.
It also involves the production of chicken, table eggs and day old chicks; the down-packaging and manufacture of grocery products such as rice, dairy, candles and beverages; and the production of a variety of bags for packaging, which include open mouth bags, general purpose bags and carrier bags.
Meanwhile, most companies that are considering delisting from the ZSE are concerned they see no value in ZSE.
Major concerns by the companies include a lack of liquidity on the ZSE as well as valuation challenges, hence migration to VFEX will enable them to realize real value.
Since the launch of VFEX in 2020, four counters have delisted from ZSE namely SeedCo International Limited, Padenga Holdings, Bindura Nickel Corporation and Simbisa Brands.
National Foods shareholders approved the migration transaction at an extraordinary general meeting held on Monday.
Bongani Ndlovu