Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
CEMENT manufacturer Khayah Cement Limited, which is currently undergoing corporate rescue proceedings, has announced plans to terminate its listing on the Zimbabwe Stock Exchange (ZSE) as part of a strategic move aimed at stabilizing the company and ensuring its long-term recovery.
On December 24 last year, the company’s Board of Directors voluntarily placed Khayah Cement under corporate rescue by the provisions of the Insolvency Act [Chapter 6:07].
Mr Bulisa Mbano of Grant Thornton was appointed Corporate Rescue Practitioner to guide the restructuring process.
As permitted under the Insolvency Act, the corporate rescue initiative seeks to restructure the company’s operations, safeguard stakeholder interests, and prevent liquidation.
In a recent notice, Khayah Cement revealed that it plans to delist from the ZSE.
“The delisting decision follows careful consideration by the Corporate Rescue Practitioner in consultation with financial advisors and has been determined to be in the best interests of the Company and its stakeholders,” said the company.
“The decision has been taken to facilitate the resuscitation of the Company by developing and implementing a rescue plan aimed at restructuring its affairs, business, property, debt and other liabilities.”
The company explained that the delisting is a critical step in stabilising operations and ensuring long-term viability. It further noted that Khayah Cement has struggled to meet certain listing requirements and cover the associated costs, including the submission of timely financial reports and listing fees.
By delisting, the company aims to focus on its restructuring efforts without the pressure of public market scrutiny. This move will allow for more confidential and efficient implementation of essential measures such as debt negotiations, cost-cutting initiatives and asset rationalisation. Terminating the listing is expected to reduce costs and free up resources for the company’s recovery.
The company also pointed out that its shares have faced prolonged uncertainty and illiquidity. The voluntary delisting is designed to end this uncertainty, protect shareholder interests during the restructuring process, and enable the company to focus on stabilizing its operations.
