Chronicle Editor
Nqobile Bhebhe, [email protected]
NATIONAL Foods Limited has informed its shareholders of the intention to de-list from the Victoria Falls Stock Exchange (VFEX), barely two years after listing.
The agro-processing company became the 9th listing on the foreign currency-denominated bourse when it listed in January last year.
VFEX is the only exchange in Africa trading in the United States dollars and was established as a pioneer offshore financial services centre by the Government in 2020 to attract global investment.
However, in a cautionary statement to shareholders yesterday, the firm said it is considering delisting from the bourse.
“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,” Mr Leigh Howes, the group legal counsel and company secretary said in a cautionary statement.
He said 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.
National Foods would become the first counter to delist from the VFEX. Bindura Nickel Corporation (BNC) is undergoing reconstruction.
According to the September cautionary statement, the firm said the directors are “contemplating a transaction, which may have an effect on the company’s securities.
Further details of the transaction will be provided to shareholders once all regulatory processes and further deliberations have been finalised.
National Foods is one of the country’s largest food manufacturers, producing a broad range of fast-moving consumer goods, as well as animal feed with an international distribution network.
Over the years National Foods has embarked on a growth strategy with entry into a number of new categories, as well as significant investments into existing categories.
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