Padenga Holdings’ shareholders have approved the company’s proposal to delist from the Zimbabwe Stock Exchange (ZSE) and to relist on the Victoria Falls Stock Exchange (VFEX).

The approval was granted at an extra-ordinary general meeting (EGM) held on July 2, with 92,21 percent of shareholders voting in favour of the transaction.

At the same AGM, 94 percent of the company’s shareholders voted in favour of a resolution to allow unissued shares to be placed under the control of the directors.

Padenga is set to delist from the ZSE on July 9, 2021 and list on the VFEX on July 11, 2021.

Padenga’s switch to the VFEX is motivated by incentives such as tax breaks and high foreign currency retention levels for incremental foreign currency earnings.

The VFEX will also give Padenga a better chance to raise foreign currency “from a wider deeper potential market, to expand existing business, acquire or establish new business and fund acquisitions.”

In a related development, the ZSE yesterday issued a statement announcing the halting in the trading of Padenga shares on the local bourse with effect from July 6, 2021.

“Investors will not be able to buy or sell Padenga shares during the period the Securities Halt is in effect,” said ZSE chief executive Justin Bgoni.