daniel chigunweBusiness Writer
The Zimbabwe Stock Exchange (ZSE) is still in the process of securing regulatory approval in respect of its scheme of reconstruction that will among other things, culminate in self – listing on the local bourse’s main board.
At an extraordinary general meeting held on October 9, 2024, shareholders unanimously agreed to the transaction in which the Zimbabwe Stock Exchange Holdings Limited (ZSE Holdings), a newly incorporated entity, will make a buyout offer to shareholders of the ZSE.
They will be settled pari-passu and at an exchange ratio of “1” ZSE Limited Ordinary Share for “1” ZSE Holdings Ordinary Share.
The development will significantly alter the corporate structure and governance of both entities.
In a statement to shareholders and investors, the ZSE said it anticipates the approvals to be obtained in due course.
“The process of obtaining regulatory approvals, inter alia from the Zimbabwe Revenue Authority (ZIMRA) in respect of the Scheme of Reconstruction and the Securities and Exchange Commission of Zimbabwe (SECZim) in terms of the Self Listing Rules (S.I147 of 2024) and registration of the Special Resolutions passed by members and ancillary statutory returns and updates, are all in progress.
“While it is anticipated that these approvals will be obtained in due course, delays may be occasioned by the need to effect certain amendments to S.I. 147 of 2024 to facilitate the listing of ZSEH Ltd on the ZSE Main Board,” the ZSE said.
It added that shareholders will therefore be provided with regular updates of progress as regards the fulfilment of the condition’s precedent prior to the release of the pre-listing statement.
According to ZSE, the primary goal scheme of reconstruction is to streamline operations, improve liquidity and unlock shareholder value through the creation of a more robust corporate entity.
After the transaction the shareholders of ZSE Limited will receive the entire issued ordinary shares of ZSE Holdings.
“The purpose of incorporating ZSE Holdings Limited was to create a listable holding company that would control a collapsed existing structure of ZSE Limited,” the ZSE said in an earlier circular, adding that this reorganisation will enable a smooth transfer of shareholding from ZSE Limited and VFEX to ZSE Holdings.
The operations of both the ZSE and VFEX will remain independent due to separate securities exchange licenses.
The two entities will operate under ZSE Holdings, facilitating the introduction of new products and services while maintaining regulatory compliance.
Bongani Ndlovu