New listing on ZSE

listed on the Alternative Investment Market.
A reverse listing is a method by which an unlisted firm goes public. In a reverse listing, a public company acquires the shares of an unlisted company and in the process becomes a public company, obtaining the public company’s listing status.
Cambria is the majority shareholder in Celsys, with 61 percent equity. It will offer its shares to exiting shareholders in Celsys at an agreed ratio.
The transaction will be subject to approval by regulatory authorities and shareholders will convene an extraordinary general meeting.
“There will be some valuations and that will determine the ratio,” said a source familiar with the transaction. Before opting for the reverse listing route, Cambria had plans to go public via an initial public offer. Celsys was valued at US$479 894 at a price of US0,03c per share last Friday.
Celsys published a cautionary statement last week advising “all shareholders that the company is currently engaged in discussions that may have a material impact on the value of the company”.
There was no comment from Mr Paul Turner, a director for Celsys.
Cambria believes the ZSE listing will help strengthen growth prospects and therefore maximise the value of the company and its shares.
It would also facilitate direct investment in Cambria by Zimbabweans, corporations and financial institutions and support local economic growth in line with the company’s objective of playing an integral role in the revival of the Zimbabwe economy.
This would also provide Cambria with opportunities to access capital for growth, future expansion and the implementation of its existing plans.
Cambria owns 61 percent in Celsys, one of the least capitalised companies on the ZSE, which specialises in security printing, information technology and telecommunications.
It also owns 100 percent stake in Millpal, 51 percent in pharmaceutical distributor Panafmed and 51 percent in mobile software producer ForgetMeNot.
In addition, the company owns 100 percent of electronic transfer solutions Paynet and 100 percent of the exquisite Leopard Rock Hotel in the Eastern Highlands of Zimbabwe.
The Zimbabwe-focused conglomerate sold its 79 percent stake in beachfront-located Adeamento Turistico de Macuti Hotel in Mozambique and is planning a number of investments in and outside Zimbabwe.
Companies that went through a similar route include Aico, which replaced Cottco listing in September 2008. TN reverse listed Tedco after acquiring a stake in the furniture and household goods retailer.