Brighton Gumbo Business Reporter
BRICK manufacturing concern, Radar Holdings Limited, has announced plans to delist from the Zimbabwe Stock Exchange (ZSE) due to the underperformance of the group. According to the ZSE requirements, in order for a company to delist from the stock exchange, an approval of at least 75 percent of the company’s minority shareholders is needed.
In an abridged information memorandum to shareholders and notice of an extraordinary general meeting to be held on February 25, Radar Holdings said its 2014 full year after tax profits declined from $288,006 to a loss of $288,071 in 2015.
“The reason for the proposed delisting is that the Group continues to under-perform, furthermore, compounding the group’s under-performance are the costs associated with it remaining listed on the Zimbabwe Stock Exchange that are exuberant,” said the group.
“Secondly, trading in the Shares of the Company has been limited and the absence of sufficient buyers and sellers of the Shares has meant that the shares are relatively illiquid.”
Radar said during the 2015 calendar year, the group traded a mere 79, 483 shares valued at $2,302, further reiterating the illiquidity of the Shares.
“Finally, the size of the company and the illiquidity of shares don’t allow it to fully take advantage of being listed on the ZSE,” said the group.
It said for these reasons, the board believes that it is in the best interests of the company and the shareholders as a whole if the approval of the delisting occurs as soon as possible.
However, according to the circular, Radar holdings will remain a public company although it will not be listed.
“The delisting will mean that shareholders will no longer be able to trade their shares on the ZSE. Shareholders who might wish to sell their shares after the delisting may still do so but the price per share will be by private valuation and agreement between buyer and seller, and the means of sale will be restricted to private deals,” said the group in a statement.
In its results for the full year to June 30, 2015, Radar recorded a 11 percent decline in its sales citing tight liquidity conditions prevailing in the country.
The group runs Radar Properties (Pvt) Ltd, Radar Investments (Pvt) Ltd and MacDonald Bricks.