Vusumuzi Dube
Business Reporter
National Foods Limited is contemplating de-listing on the Victoria Falls Stock Exchange (VFEX), it has been learnt.
The agro-processing company listed in January last year becoming the 9th listing on the foreign currency-denominated bourse.
However, in a cautionary statement to shareholders Group Legal Counsel and Company Secretary Mr Leigh Howes said delisting was under consideration.
“Further to the cautionary announcement dated 5th September 2024, shareholders and the investing public are advised that the Board of Directors of National Foods Holdings Limited continues to contemplate a transaction which may have an effect on the Company’s securities.
“The Group is considering delisting from the Victoria Falls Stock Exchange.”
Further details of the transaction will be provided to shareholders once all regulatory processes and further deliberations have been finalised.
“Shareholders are therefore advised to continue to exercise caution and consult their professional advisers when trading in the Company’s shares.
In listing on VFEX, the firm said it will help its shareholders to realise value of their holdings and provide a more accurate benchmark of the stock’s performance and mitigate valuation volatility.
“National Foods will have greater ability to raise capital against a dollarised balance sheet. The VFEX’s potential to become a regional exchange enhances NFHL’s opportunity to attract a diversified investor base, which can assist the company in both its local and in time potential regional initiatives,” said the firm then.
“The company’s migration from ZSE to VFEX would potentially improve the company’s regional profile and commercial standing, strengthening the company’s prospects for further local as well as regional expansion.
“Additionally, the VFEX would promote the marketability of NFHL investment regionally.”
Online Reporter