Colcom Holdings has delisted its shares from the Zimbabwe Stock Exchange (ZSE) after Innscor assumed 100% ownership of the pork and meat processor.
BY BUSINESS REPORTER
In May, Colcom said Innscor had made an offer to buy out shares held by minorities in Colcom in exchange for Innscor shares. At that time, Innscor had 79,27% shareholding.
A scheme meeting was held in October, where Colcom minorities approved the transaction in which they would get a 0,55 Innscor ordinary share for every one Colcom share held.
In a notice last week, Colcom said it had fulfilled all the conditions precedent to the transaction such as the sanctioning of the meeting by the High Court and Reserve Bank of Zimbabwe approved payment of the scheme consideration in the form of Innscor Africa Limited ordinary shares for non-resident Colcom shareholders.
“Accordingly, the scheme has become effective as at December 21, 2017 following its registration with the Registrar of Companies, and the scheme consideration having been settled, with Innscor becoming the sole remaining shareholder of Colcom. Subsequently, the ZSE has approved the delisting of Colcom with effect from the day following the date of transfer of scheme consideration,” Colcom said.
According to a circular to Colcom shareholders on the scheme meeting held on October 25, the 100% ownership of Colcom by Innscor allows Innscor to divisionalise Colcom, bringing benefits such as utilisation of tax losses. It said the benefits would accrue to both current Innscor shareholders and the scheme shareholders who would receive shares in Innscor.
It said the delisting of Colcom from the stock exchange would bring benefits such as reduced compliance costs.