Chronicle Editor
Nqobile Bhebhe, Senior Business Reporter
ZIMBABWE Stock Exchange (ZSE)-listed retail outlet, OK Zimbabwe, has hinted at restructuring of the company that would entail unbundling into a group of companies.
OK Zimbabwe trades under three highly recognised brand namely OK Stores, Bon Marche, and OK Mart.
In a cautionary statement, the retail giant said it was engaged in discussions that involve a potential transaction that may have a material impact on the value of the company’s shares.
“The directors of OK Zimbabwe Limited wish to advise all stakeholders and the investing public that the company is engaged in discussions that involve a potential transaction that may have a material impact on the value of the company’s shares,” reads the notice.
“The transaction involves the restructuring of the company and its unbundling into a group of companies.”
OK Zimbabwe, which has 68 outlets countrywide, said further details on the transaction will be provided once discussions have been finalised.
“Shareholders are, therefore, advised to exercise caution and to consult their professional advisors when trading in the company’s shares until the finalisation of the aforementioned matter.
“The company’s shareholders and members of the public will be updated on the matter in accordance with the Zimbabwe Stock Exchange Listing Rules,” said the company.
In its annual report for the year ended March 31, 2022, the retail group said despite several operational challenges it plans to implement its growth strategy and focus on extending reach through store expansion and store refurbishment programme and improvement in supply chain efficiencies.
During the period, capital expenditure for the year was $3,1 billion up from $2,1 billion in prior year.
The bulk of the capital expenditure was on refurbishment of stores and the opening of new ones.
Two new stores namely OK Banket and OK Mart Chivhu, were opened in the second half of the financial year and are expected to contribute meaningfully in the coming years.
Online Reporter