Chronicle Editor
Senior Business Writer
SHAREHOLDERS of National Foods Limited voted on Wednesday to voluntarily delist the company from the Victoria Falls Stock Exchange (VFEX).
The resolution was passed during an extraordinary general meeting, with the company citing the need for greater operational flexibility and a focus on long-term strategic objectives as the key drivers for the decision.
National Foods also stated that it does not anticipate requiring capital from public equity markets in the near term, diminishing the benefits of remaining listed on the VFEX.
Another resolution approved during the meeting was a share buyback programme. The company explained that the repurchase offer provides shareholders with an opportunity to realise the full value of their shares and addresses liquidity challenges associated with limited trading activity on the VFEX.
A share repurchase typically signals that a company’s management believes its shares are undervalued. The company may buy shares directly from the market or allow shareholders to tender their shares at a fixed price. By reducing the number of shares in circulation, share buybacks increase earnings per share and often enhance the market value of the remaining shares.
National Foods, an agro-processing giant and subsidiary of Innscor Africa, became the ninth company to list on the foreign currency-denominated VFEX when it migrated from the Zimbabwe Stock Exchange (ZSE) in January 2023.
The company operates manufacturing sites in Harare and Bulawayo, distributing its wide range of products across Zimbabwe. These include snacks, biscuits, pasta, sugar beans, baked beans, popcorn, soap, and a full range of animal feed.
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