Zimpapers Logo

Business Reporter

GETBUCKS Microfinance Bank Limited has hinted at plans to full delisting of its securities on the Zimbabwe Stock Exchange (ZSE).

Last year, the financial service company indicated desire to migrate the company’s shares listed on the ZSE to the US dollar-denominated Victoria Falls Stock Exchange (VFEX) in line with the firm’s recapitalisation plans.

ZIMBABWE Stock Exchange (ZSE)

In a cautionary statement to shareholders yesterday, company secretary, Mr Michael Mnemo, said: “Further to the cautionary announcement dated 20 December 2022 advising of termination of the process of migration of the company’s listed securities from the Zimbabwe Stock Exchange (ZSE) to the Victoria Falls Stock Exchange (VFEX), shareholders are advised that the company is now considering a full delisting of its securities on the ZSE.

“Shareholders are also advised that recapitalisation negotiations are still ongoing.”
Mr Mnemo said the full impact of the delisting and recapitalisation is still being determined and, if successful, may have a material effect on the price of the securities.

“Accordingly, shareholders are advised to continue exercising caution when dealing in the company’s securities.”
The microfinance bank has been negotiating for a US$5 million recapitalisation package to enable it to meet the required minimum capital threshold set by the Reserve Bank of Zimbabwe (RBZ).

According to the central bank, Tier 3 deposit-taking microfinance banks should have a minimum capital of US$5 million while Tier 1 banks, large indigenous commercial banks, and all foreign banks are required to have US$30 million minimum capital.
Tier 2 commercial banks, merchant banks, building societies, development banks, finance, and discount houses are required to have a US$20 million minimum capital.

Meanwhile, ZB Financial Holdings (ZBFH) says negotiations with one of its shareholders are still on going for a potential acquisition of a control block of securities.

Money – Image taken from Pixabay

Last year, the listed financial services group offered to buy out minority shareholders of Mashonaland Holdings after snapping up a control block of 40,59 percent stake in the real estate firm earlier this year.

In line with provisions of the Securities and Exchange (Zimbabwe Stock Exchange Listing Requirements) Rules, SI 134 of 2019, and the Companies and Other Businesses Entities Act, Chapter 24:31, ZBFH was obliged to make the mandatory offer to buy out the minorities.

Reads part of the notice: “Further to the cautionary statements dated 20 June 2022, 22 July 2022, 31 August 2022, 30 September 2022, and 17 November 2022, shareholders are advised that negotiations with one of the shareholders are still ongoing for a potential acquisition of a control block of securities, which if concluded successfully, may have a material effect on the company’s securities price.

“Accordingly, shareholders and members of the investing public are advised to exercise caution when dealing in the company’s securities until a full announcement is made,” reads the notice.

ZBFH is a holding company for a group of companies, which provide commercial and merchant banking as well as other financial services. The company operates in four segments, including banking, fund management, reinsurance, and life assurance.