National Foods Holdings Limited, Zimbabwe’s largest meals producer, has acknowledged that its plan to delist from the Victoria Falls Stock Exchange (VFEX) is prompted by lowered advantages of sustaining a public itemizing.

The firm cited restricted buying and selling exercise on the VFEX, leading to low liquidity, as a key motive for the proposed delisting.

In a round to shareholders, National Foods defined that the delisting will grant the corporate elevated flexibility to give attention to long-term strategic aims with out the regulatory and compliance bills related to sustaining a public itemizing.

The firm additionally famous that a good portion of its shares, roughly 75.18%, is held by two main shareholders, limiting the affect and participation of smaller retail buyers.

As a part of the proposed transaction, National Foods will supply to repurchase as much as 20% of its issued bizarre shares at a consideration of US$1.71 per share.

The supply offers a chance for shareholders to promote their shares at a value reflecting their true worth, addressing the liquidity constraints related to the shares’ restricted buying and selling exercise on the VFEX.

“The Offer provides an opportunity for Shareholders to sell their ordinary shares at a consideration of US$1.71 per share (‘the Offer Consideration’),” the corporate famous.

“This move allows Shareholders who prefer not to hold private Shares in National Foods to exit their investments prior to the delisting. Following the completion of the offer, National Foods will proceed with the Delisting, thereby transitioning to a privately held entity.”

The proposed delisting and share repurchase supply are topic to shareholder approval, with a unprecedented normal assembly scheduled for December 18, 2024.