adminOliver Kazunga Acting Business Editor
THE Zimbabwe Stock Exchange (ZSE) has delisted Interfresh Limited after the horticultural concern presented a voluntary termination from the bourse’s official list.
The delisting is with effect from December 31, 2013.
In a statement yesterday, ZSE chief executive officer Alban Chirume said the delisting of Interfresh was made within the stock exchange listing rules.
“Shareholders of the company (Interfresh) convened and approved the termination in an extraordinary general meeting held on December 11, 2013.
“Following this, the directors of the company formally applied for voluntary termination of listing of the company. Subsequently, pursuant to Section 23 of the Securities Amendment Act 2013, the ZSE sought and obtained permission of the Securities and Exchange Commission of Zimbabwe on December 19, 2013 to remove Interfresh Limited from the official list based on Sections 1.10A to 1.10D of the stock exchange listings requirements,” he said.
He added: “In terms of Section 1.18 of the ZSE listing rules, holders of Interfresh Limited shares are hereby advised that in view of the termination, the paper is no longer tradable on the ZSE.”
In November 2013, Interfresh indicated plans to delist from the ZSE saying it did not reflect true value on the local bourse as it consistently traded at a discount to net asset value of the company.
The firm has announced that following the delisting, it would seek to raise US$6 million capital through convertible debt from private equity and structured finance markets, using valuation methods other than the stock market.
It is also hoped that after delisting, Interfresh would remain a public entity while trading of its shares will be by private valuation and agreement between buyer and seller.
It will also discontinue publication of its financials following the delisting.
Since the adoption of a multicurrency system in February 2009, the horticultural entity has not been adequately capitalised but relied on debt financing to sustain its operations.
Last year, the entity embarked on a US$3 million rights issue with the funds earmarked to recapitalise operations and retire debt.
In 2011, the firm secured US$5 million six-year loan to fund capital expenditure and working capital.
Online Reporter