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Simbisa seeks shareholder approval for ZSE delisting

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By Alois Vinga

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QUICK services restaurants group, Simbisa Brands Limited is seeking shareholder approval in support of a decision to delist from the Zimbabwe Stock Exchange (ZSE) .

The decision is in line with agreements reached at a meeting held Monday 26 September 2022, where the board of directors of Simbisa considered termination of its ZSE listing with the intention to register the company’s shares onto the VFEX by way of introduction.

In a circular to shareholders, Simbisa management said benefits of the proposed transaction include, but are not limited to, the following: capital markets deepening through a broader shareholder base and ability to raise capital in foreign currency.

“There will be offshore settlement allowances lowering exchange control risks; lower trading costs of 2,12% compared to 4,63 % on the ZSE may improve the shares’ liquidity, tax incentives for shareholders, including a 5% withholding tax on dividends and no capital gains tax on share disposal,” reads the circular in part.

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Other perceived advantages include enhanced local and international profile amongst the public and investors; a provision of a de facto third-party US$ valuation for Simbisa.

However, in the event that the proposed transaction does not take place, then Simbisa will remain listed on the ZSE, and the benefits previously outlined above will not be available to the company or its shareholders.

“If you are in doubt as to the action you should take, you should immediately seek advice from an independent stockbroker, bank manager, legal practitioner, accountant, or any other professional advisors of your choice,” the notice reads in part.

The company’s shareholders have, therefore, been called to attend and vote at the extraordinary general meeting to be held Friday November 18, 2022.

Shareholders who are unable to attend the EGM, but who wish to be represented thereat have been asked to complete, and sign the Proxy Form, included with this document and ensure it is lodged at the registered offices by no later than 1600 hours, November 16, 2022.