Online Reporter
Nelson Gahadza
OK Zimbabwe Limited shareholders have approved a hybrid turnaround strategy to support its recovery, which includes raising US$20 million through a shareholder rights offer and the disposal of selected immovable assets to generate an additional US$10,4 million.
At an extraordinary general meeting (EGM) held this morning, the shareholders also approved the board reconfiguration and leadership transition, with the new board coming in with renewed oversight and governance capacity.
Group chairman Mr Herbert Nkala, speaking at the EGM, said the rights offer was underwritten by key shareholders with National Social Security Authority (NSSA), as the lead underwriter and Datvest Nominees and Old Mutual Life Assurance Company, as sub-underwriters.
Collectively, the three shareholders hold 48 per cent of the company’s ordinary shares.
“Proceeds from these initiatives will be used to restock stores, repay overdue creditors, restructure the store network, modernise operations and invest in new technologies.
“These measures aim not only to stabilise the company but also to restore its position as a leading retailer by revitalising its customer value proposition, rebuilding supply trust and safeguarding against judicial asset recovery,” Mr Nkala said.
The shareholders approved the US$20 million renounceable rights offer comprising 1 834 982 573 new ordinary shares at a subscription price of US$0,0109 for each, payable in full in US dollars, on the basis of 1,37 rights offer shares for every 1 OK Zimbabwe ordinary share already held at the record date of July 21, 2025.
Mr Nkala highlighted that some of the immovable properties owned by the company to be disposed of include a vacant commercial stand along Liberation Legacy Way in Borrowdale; a warehouse on Birmingham Road in Workington; OK Mbuya Nehanda, Harare; OK Gweru; OK Glen View; OK Malvern in Waterfalls, Harare; and a vacant commercial stand along the Harare-Masvingo Highway in Southlea Park, Harare.
He also noted that the current executive management, comprising seasoned former executives who were brought back to stabilise the company, will remain in place until the end of the current financial year.
“A new substantive executive management team will be appointed to succeed them, with a mandate to implement the strategy with operational rigour and strategic foresight,” he said.
According to a circular published before the EGM, the rights offer and asset realisation initiatives are not standalone actions but integral pillars of a bold, coordinated transformation agenda.
The circular noted that the company was entering a transformative period underpinned by a clearly defined turnaround strategy aimed at restoring financial strength, operational efficiency, and long-term shareholder value.
The company said it will realign its operations with market trends by reassessing its brand segmentation, launching digital platforms such as OKShopEasy.com and closing or divesting from underperforming stores and non-core investments.
