ASTRA Industries plans to delist from the Zimbabwe Stock Exchange (ZSE) this year as it is not compliant with the bourse’s rules on shareholding.
BY VICTORIA MTOMBA
Board chairman Addington Chinake said in the statement accompanying the group’s financial results that Astra had not adhered to the listing rules which stipulated that at least 30% shares must be held by the public.
Chinake said in compliance with ZSE listing rules and the approval terms and conditions agreed when the Finance Trust of Zimbabwe’s 63,25% stake in the company was acquired by Hemistar Investments Private limited (Hemistar) and Kansai Plascon Africa Limited (KPAL) in July 2013, an offer to minorities was made in August and September last year.
“Post the offer to minorities, Hemistar and KPAL control 80,2% of the issued shares of the company and the top four shareholders hold 98,12% of all the issued shares in the company. The current shareholding does not accord with rule 4,22 and 4,25(d) of the ZSE regulations. Accordingly, the board is recommending the delisting of the company in terms of rule 1,10E,” Chinake said.
In an interview yesterday, Astra Industries finance director Heritage Nhende said the company was yet to come up with a date for delisting from the bourse.
Nhende said any company would have to delist if it had the above scenario unless it had to sell back the shares to the market so that it was not in breach of ZSE rules.
Since October 2014 little trading has been registered in Astra shares on the ZSE. In the financial year ended December 31 2014, Astra posted a 23,8% increase in after-tax profit to $2,1 million from the comparable period in 2013.
Turnover was 19% lower to $32,2 million compared to $39,6 million from the 16 months ended December 2013.
“The benefits of partnership with Kansai Plascon impacted positively particularly in the paints division. The unit achieved volume growth of 28% for the comparative period. However, due to product mix and competitive pressures the revenue growth was muted, but still pleasing being 12% higher than the comparative period,” Chinake said.