Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
Shareholders of Khayah Cement Limited, under corporate rescue proceedings, have approved a resolution to voluntarily de-list the company from the Zimbabwe Stock Exchange (ZSE) as part of a broader turnaround strategy.
The resolution to delist the company’s shares was passed during an Extraordinary General Meeting (EGM) held on Monday. This will bring the firm’s 45-year history as a quoted company to an end.
Khaya confirmed that the EGM met quorum requirements, with more than 75 percent of minority shareholders in attendance.
“The resolutions were sustained by a 96 percent vote of those present and entitled to vote. The requirements of the Rules were satisfied,” the company said in a statement following the meeting.
The company, formerly Lafarge Cement Zimbabwe, entered corporate rescue on December 24, 2024, under the Insolvency Act (Chapter 6:07), citing persistent operational and financial challenges.
It is now under the management of Corporate Rescue Practitioner Mr Bulisa Mbano of Grant Thornton.
Reads part of the resolution: “That, the company’s ordinary shares be removed from the main board of the Zimbabwe Stock Exchange through voluntary termination of the listing in terms of Section 11 of the ZSE Listing Requirements.”
According to a shareholder notice issued after the EGM, Mr Mbano has been authorised to proceed with the delisting.
“That, the Corporate Rescue Practitioner be and is hereby authorised to do any and all such acts and things (including executing such documents as may be required) as he may consider necessary, desirable, or expedient to give effect to resolution 1 above,” the notice stated.
In terms of Section 11(5) of the ZSE Listing Rules (2019), a resolution to de-list requires at least 75 percent approval from shareholders present or represented by proxy at a general meeting, excluding controlling shareholders and their associates.
The decision to delist forms part of a broader restructuring exercise being spearheaded by Mr Mbano.
The strategy includes debt reorganisation, cost rationalisation and asset realignment.
Management believes that operating as a privately held entity will allow Khayah Cement to restructure without the immediate pressures of regulatory compliance and public market scrutiny.
“The delisting will facilitate confidential and focused implementation of measures such as debt restructuring, cost containment and asset rationalisation,” the company said.
It added that maintaining a ZSE listing had become increasingly burdensome amid constrained cash flows, citing the high cost of listing fees and the requirement for timely financial disclosures.
The termination of the listing is expected to lower administrative costs and enable the redirection of critical resources toward stabilising operations and restoring long-term viability.
Khaya Cement, formerly Lafarge Cement Zimbabwe has a rich history dating back to 1956 when it was established as The Salisbury Portland Cement Company Limited, owned by the United Kingdom-based Associated Portland and Manufacturers Association.
It was listed on the ZSE in 1980.
In 1982, the company changed its name to Circle Cement Limited, aligning with the holding company’s name change to Blue Circle Industries Plc. Lafarge acquired the company in 2003, and it was re-listed on the ZSE as Lafarge Cement Zimbabwe Limited in 2007.
Over the years, Lafarge Cement Zimbabwe has made significant contributions to the country’s construction industry, including landmark projects such as the Kariba Dam, Cabora Bassa Dam, major high-rise buildings, and bridges, showcasing its strong reputation as a trusted cement producer.
