Agro-focused entity Chemco is set to delist from the Zimbabwe Stock Exchange (ZSE).
Group chairman Antony Mandiwanza told an annual general meeting on Monday the process was still subject to the requirements set out in the law.
He could not give a time frame for the delisting.
“We have to respect the process of the law. Specific details will only be given afterwards,” Mandiwanzira said.
TSL chief executive Washington Matsaire said the move would result in a cost saving of $500 000.
Chemco is a subsidiary of TSL.
Matsaire noted the counter lacked critical mass to remain listed and that because shares were generally illiquid it would be more beneficial to shareholders if the company were to delist.
Matsaire said the brand had been badly damaged, but believes shareholders still stood to benefit.
“The boards of both TSL and Chemco are
convinced the approach is to the best advantage of shareholders,” Matsaire said.
Chemco is currently trading on a year-to-date loss of 95% with buyers at 0,3c.
The group reported losses of $2,58 million last year, but managed to make a small pretax profit in the first quarter of $22 235.
Included in the group losses for last year was a book loss of $769 215 with regards the sale by Agricor Limited of a non-core asset, Premier Milling Company.
Turnover in the first quarter was at $1,29 million from last year’s $6,5 million.
Chemco last year disposed Agpy — a seed company — to a management consortium led by Brain Mutandiro and Jonathan Shonhiwa and closed two other loss-making divisions — Chemco Transport (Farm-A-Rama Transport) and Farm-A-Rama in a bid to improve the group’s earnings.
Last year, drug manufacturing firm, Caps Holdings also delisted from the ZSE.
In 2011, the ZSE failed to record new listings as a result of liquidity constraints on the market.