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Nedbank shareholders hitherto did not have a localised exit mechanism, they could only sell their shares on the Johannesburg Stock Exchange through a share dealing services structure facilitated through Corpserve Nominees.
The listing of Nedbank ZDRs on the Victoria Falls Stock Exchange (VFEX) thus affords Nedbank shareholders a localised exit mechanism. Moreso, shareholders and other interested investors previously could not purchase Nedbank shares through Corpserve Nominees.
This listing gives current shareholders, as well as new investors, a mechanism to seek exposure to Nedbank through Nedbank ZDRs on the VFEX.
Further, the lengthy trading and settlement turnaround time of the previous process has been improved by listing Nedbank ZDRs on the VFEX. Shareholders’ sale proceeds which were subject to foreign exchange surrender requirements in the old structure are now fully exempt on the VFEX.
Benefits of the Zimbabwe Depository Receipt Model
Increased Liquidity – This model unlocks liquidity in Nedbank as participants will have coordinated entry and exit mechanisms.
Transparency – The increased transparency for shareholders and other investors as daily reports revealing the bid and offer prices are published by the VFEX.
Expanded Options – Both current shareholders of Nedbank and potential investors will find potential avenues to transact in this instrument locally and hence increase convenience and expanded options.
Security – The model is anchored on a solid system architecture that delivers the required security and credibility. Additionally, holders of Nedbank ZDRs can use them as security against local borrowings through the pledge functionality of the VFEX Central Securities Depository (CSD).
Settlement – The model will improve the settlement cycle by approximately 6 days – the envisaged settlement cycle will be a T+3.
Trading in Foreign Currency – The new model facilitates trading in foreign currency and trading is in foreign currency, Corpserve Nominees who are authorised to receive and distribute foreign currency proceeds to shareholders, continue to distribute sell proceeds to local Nostro FCA accounts based on the current approvals held.
Action required
Shareholders of Nedbank Group Limited on the Zimbabwe branch register (local shareholders) who are interested in trading their equity securities in Zimbabwe may elect, by completing the form of acceptance to convert their Nedbank shares into Nedbank depository receipts to be issued and listed on the Victoria Falls Stock Exchange. Should they be in any doubt as to the action required, they can consult their stockbrokers, bankers, accountants or other professional advisors immediately.
Trading in Nedbank ZDRs on the VFEX will commence on 18 November 2022.
Background of Nedbank Group
Nedbank Group Limited is a financial services group offering wholesale and retail banking services, as well as insurance, asset management and wealth management services. Through its principal banking subsidiary, Nedbank Limited, the group is one of South Africa’s four largest banks.
Apart from its predominant exposure to the South African market, the business also has subsidiaries in Lesotho, Mozambique, Namibia, eSwatini (Swaziland) and Zimbabwe.
Nedbank Group Limited shareholders who wish to accept the offer can contact Corpserve Registrars on the following details;
Second Floor, ZB Centre, Corner Kwame Nkrumah and First Street, Harare, Zimbabwe
Tel: +263 242 751559-61
E-mail: [email protected]
Website: corpserveregistrars.com
Twitter: @CORPSERVEZim
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