THE Zimbabwe Stock Exchange (ZSE) has announced that it is still in the process of obtaining regulatory approvals for its scheme of reconstruction, which will culminate in self-listing on the local bourse’s main board.
At an extraordinary general meeting held on October 9, 2024, shareholders unanimously approved the transaction, which involves the incorporation of Zimbabwe Stock Exchange Holdings Limited (ZSE Holdings).
The newly formed entity will make a buyout offer to ZSE shareholders, exchanging “1” ZSE Limited Ordinary Share for “1” ZSE Holdings Ordinary Share on a pari passu basis. This financial clause ensures equal treatment of creditors and claims across all obligations.
In a statement to shareholders, ZSE secretary, Mr Lyndon Nkomo, highlighted the ongoing efforts to secure approvals from key regulatory bodies, including the Zimbabwe Revenue Authority (Zimra) regarding the scheme of reconstruction, Securities and Exchange Commission of Zimbabwe (SecZim) in line with the self-listing Rules (S.I. 147 of 2024) and registration of special resolutions passed by members and associated statutory returns.
“While it is anticipated that these approvals will be obtained in due course, delays may be occasioned by the need to effect certain amendments to S.I. 147 of 2024 to facilitate the listing of ZSEH Ltd on the ZSE Main Board,” the statement noted.
The scheme of reconstruction aims to streamline operations, enhance liquidity and unlock shareholder value by creating a stronger corporate entity. Following the transaction, shareholders of ZSE Limited will own the entire issued ordinary shares of ZSE Holdings.
“The purpose of incorporating ZSE Holdings Limited was to create a listable holding company that would control a collapsed existing structure of ZSE Limited,” stated the ZSE in an earlier circular.
The reorganisation will facilitate a seamless transfer of shareholding from ZSE Limited and the Victoria Falls Stock Exchange (VFex) to ZSE Holdings. Despite operating under ZSE Holdings, the ZSE and VFex will maintain their independence through separate securities exchange licences.
The ZSE has stressed the importance of regular communication with stakeholders throughout the transition.
“Stakeholders will therefore be provided with regular updates of progress as regards the fulfilment of the conditions precedent, prior to the release of the Pre-Listing Statement. Shareholders are therefore advised to continue exercising caution in dealing with their shares,” the ZSE stated.
