RADAR seeks de-listing
BRICK production and property counter, Radar Holdings Limited is to seek shareholder approval to delist from the Zimbabwe Stock Exchange (ZSE) after a string of poor performances.
The Radar board said in a note to shareholders on Thursday that an extraordinary general meeting would be held on February 25, 2016 at which shareholders would be allowed to vote for the transaction.
“The reason for the proposed delisting is that the group continues to underperform. After tax profits declined from US$288 006 in FY14 to a loss of US$288 071 in FY15. Furthermore the, compounding the group’s underperformance are costs associated with remaining listed on the Zimbabwe Stock Exchange that are exuberant. 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. During the 2015 calendar year Radar trade a mere 79 483 shares valued at US$2 302, further reiterating the illiquidity of the share,” Radar said in the statement to shareholders.
ZSE listed companies pay several fees, such as US$4 270 annual listing fees, and Radar paid about US$46 000 to auditors and about US$18 000 in costs for publishing results.
About US$6 000 is paid to transfer secretaries who maintain the share register.
The statement added; “After the delisting, the company will still remain a public company, however, it will not be a listed company. Shareholders who might wish to sell their shares after the delisting may still do so but their 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”.
Radar’s move comes after several firms have recently delisted from the ZSE, citing among other issues the high costs of maintaining a listing on a bourse that has been hit by a trading drought due to a liquidity crisis facing the market.
TA Holdings has left the bourse, while CAPS Holdings and several others have also delisted.
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