CHEMCO Holdings plans to delist from the Zimbabwe Stock Exchange (ZSE) this year as it seeks shareholder approval for the transaction due to limited retail and institutional investor interest in Chemco shares, the company said in a statement.
Chemco said in its circular to shareholders yesterday it was seeking approval at an extraordinary general meeting scheduled for next month.
Shareholders were expected to approve the TSL Limited (Chemco’s parent company) acquisition of minority shares through a share swap under which TSL would exchange a single TSL share for every 1,88 Chemco shares with the view to delist the company shares from the ZSE.
The company said it was delisting because it has a small market capitalisation and the compliance and cost requirements of the ZSE were becoming onerous to the company.
“Trade in Chemco shares remains suspended on the Zimbabwe Stock Exchange. Plans for the delisting of Chemco are at an advanced stage and the whole exercise should be completed by April 2014,” the company said.
Chemco was suspended from the ZSE in 2012.
The company posted a comprehensive loss of $380 479 for the year ended October 2013 compared to a $1,1 million loss same period last year.
The company said it recorded a 27% increase in revenue to $4,4 million from $3,5 million during the same period last year.
The company said the benefits of the restructuring exercise continued to filter through with the operating loss dropping 83% from the previous year.
Chemco’s subsidiary Agricura posted an improved revenue performance during the period under review compared to a loss in the previous period.
“The improvement in revenue performance in the second half of the financial year has continued into the second quarter of 2014 for Agricura.
“The company’s brands remain strong in the market and the distribution network will be improved in 2014 to cover the country’s major agricultural regions,” the company said.