Simbisa shareholders approve ZSE delisting and switch to Vic Falls bouse

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By Alois Vinga

REGIONAL focused quick service restaurants, Simbisa Brands shareholders have given the greenlight for the company to delist from the Zimbabwe Stock Exchange (ZSE) and approved the company’s listing on the Victoria Falls Stock Exchange.

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 capital markets deepening through a broader shareholder base and ability to raise capital in foreign currency.

The company contends that some of the benefits include offshore settlement allowances, lowering exchange control risks; lower trading costs of 2,12% compared to 4,63 % on the ZSE which may improve the shares’ liquidity, tax incentives for shareholders, including a 5% withholding tax on dividends and no capital gains tax on share disposal.

In an update, Monday, Simbisa revealed that two resolutions were passed at an Extra Ordinary General Meeting held last week.

“Shareholders are advised that all resolutions put to vote at the EGM of shareholders of Simbisa Brands Limited held on November 18 2022 which include delisting of the ordinary issued shares of the company from the ZSE and subsequent listing on VFSE were passed,” the company said.

The US dollar-denominated VFEX, a subsidiary of the Zimbabwe Stock Exchange, set up in October 2020 to serve as an offshore financial services centre, has in the past attracted listings such as SeedCo International, Bindura Nickel Corporation, Caledonia Mining Corporation and Padenga Holdings Limited.

Despite a slow start, the US$ bourse has registered steady growth with latest market data showing that market capitalisation for Q3 2022 closed at US$341 million, a 25% increase from the previous quarter to represent a 76% increase year on year.