HomeBusinessInnscor to buy out Colcom minorities

Innscor to buy out Colcom minorities

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Innscor Africa Limited wants to acquire shares from Colcom’s minorities in exchange for Innscor shares, a move which paves the way for the delisting of the food processor from the Zimbabwe Stock Exchange.

BY TARISAI MANDIZHA

In a cautionary statement released yesterday, Colcom’s company secretary Andrew Lorimer said the firm has received notification from its major shareholder, Innscor Africa, of intention to extend an offer to minorities for the purchase of their Colcom shares in exchange for Innscor shares.

“It is also the intention of the company to apply to the Zimbabwe Stock Exchange for a voluntary delisting in terms of Section 1 of the Zimbabwe Stock Exchange Listing Requirements,” he said adding that shareholders would be provided with more details regarding the transaction by way of a circular in due course.

Colcom’s major shareholders are Innscor Africa (79,3%), Old Mutual Life Assurance (8,44%) and Old Mutual Zimbabwe with a 1,26% stake.

In its audited abridged financial results for the half year ended December 31 2016, Colcom recorded a 23% increase in its core product volumes over the comparative period.

The group said a direct benefit from the increased investment in its own [pig production facilities, pig slaughter numbers increased by 16% over the same period and these volume increases resulted in an increase in revenue of 8% on the comparative period.

Over the past six years, there has been a series of delistings, which have seen the number of listed companies coming down to 62 from a peak of 78.

A significant number of delisted companies have failed to meet the minimum listing requirements, an indication of the unstable climate that has been persistent in the ZSE since dollarisation in 2009.

Companies that have exited the bourse include African Banking Corporation, Astra Holdings, Tractive Power, Interfresh Holdings, PG Holdings, Apex Corporation, Cairns Holdings, Celsys, Chemco Holdings, Gulliver, Interfin, Lifestyle Holdings, Phoenix Consolidated Company, Trust Holdings, and Steelnet among many others.

Recently, the National Social Security Authority increased its stake in NicozDiamond to 50,9%, after buying out some minority shareholders.

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