HARARE, Jun. 24 (NewsDay Live) — Dairibord Holdings Limited has announced plans to voluntarily delist from the Zimbabwe Stock Exchange (ZSE) and pursue a listing on the Victoria Falls Stock Exchange (VFEX), becoming the latest company to seek the benefits offered by the foreign currency-denominated bourse.
In a notice to shareholders and the investing public, the dairy products manufacturer said its board had approved the proposed transaction, which would see the company withdraw from the ZSE before listing on the VFEX.
“The Board of Directors of Dairibord Holdings Limited wishes to advise shareholders and the investing public that the Board has approved the voluntary delisting of the Company from the Zimbabwe Stock Exchange (ZSE), immediately followed by its listing on the Victoria Falls Stock Exchange (VFEX),” the company said.
Dairibord said a detailed circular outlining the rationale, terms and implications of the proposed migration is being finalised and will be distributed to shareholders in due course.
The company warned that the transaction could materially affect the value of its shares and urged investors to exercise caution while trading its stock.
“The transaction, if successfully implemented, may have a material effect on the market price of the Company’s shares. Accordingly, shareholders and members of the investing public are advised to exercise caution when dealing in the Company’s shares,” the company said.
The planned migration comes amid growing interest in the VFEX, which offers companies incentives such as trading in foreign currency, tax benefits and greater access to offshore capital.
Analysts say a move to the VFEX could strengthen Dairibord’s appeal to foreign investors and provide additional protection against local currency volatility, while improving its ability to raise long-term capital.
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If approved by shareholders and regulators, Dairibord will join a growing list of Zimbabwean firms that have shifted their primary listing to the VFEX as companies increasingly seek exposure to international investors and a more stable trading environment.
The company said further announcements would be made as the transaction progresses and regulatory approvals are sought.
