Local equities market, the Zimbabwe Stock Exchange Limited (ZSE) has delisted PG Industries, while at the same time approving Willdale to delist its Preference Shares.
ZSE chief executive Justin Bgoni said the terminations are with effect from today.
“PG Industries (Zimbabwe) Limited following the approval of the Secondary Scheme of Arrangement by shareholders and creditors of PGIZ on September 15, 2016 and fulfillment of all conditions precedent in December 2018, PGIZ applied for voluntary termination of its listing on Zimbabwe Stock Exchange Limited pursuant to paragraph 1.10E of the ZSE Listing Requirements,” said Bgoni.
“ZSE noted that PGIZ no longer met the minimum number of public shareholders for a listed company defined in paragraph 4.25(e) in Section 4 of the ZSE’s Listings Requirements.
“As required by Section 64 (a) (i) of the Securities and Exchange Act [Cap24.25], the ZSE sought and was granted permission by the Securities and Exchange Commission of Zimbabwe (“SECZ”) to delist PGIZ from the ZSE’s official list.
“In terms of Section 1.18 (d) of the ZSE Listing Requirements, holders of PG Industries Zimbabwe Limited’s securities are hereby advised that the securities can no longer be traded on the ZSE with effect from 8 April 2019.”
The long-struggling firm recently got investment from Indian group, Dewei Investments for re-capitalisation as it seeks to revive its fortunes.
PG Industries manufactures and sells a range of products through three subsidiaries; PG Merchandising, Zimtile and PG Glass. Its merchandising division has expanded over the years to include timber boards, hardware, plumbing, and wood and glass value-added products. Zimtile is the leading manufacturer of quality concrete roof tiles in Zimbabwe, as well as pavers and bricks.
Subsidiary, PG Glass manufactures and markets glass installation solutions for residential and commercial building projects, and offers a repair, replacement and installation service to the automotive industry.
The group has an international footprint; exporting its products to Botswana, Zambia, Malawi, Mozambique and the DRC.
At the same time, the local bourse has approved brickmaker Willdale’s application for voluntary removal of its Preference Shares.
Preference shares, more commonly referred to as preferred stock, are shares of a company’s stock with dividends that are paid out to shareholders before common stock dividends are issued.
If the company enters bankruptcy, preferred stock holders are entitled to be paid from company assets before common stockholders.
Said Bgoni:
“Willdale Limited Preference Shares Following the redemption of 99.74% of the Zimbabwe Stock Exchange Limited (ZSE) listed 10% semi-annual redeemable preference shares, Willdale Limited requested for the termination of listing of the Preference shares.
“Pursuant to Section 64 (a) (i) of the Securities and Exchange Act [Cap24.25], ZSE sought and was granted permission by the SECZ to delist Willdale Limited’s Preference shares from the ZSE’s official list.
“In terms of Section 1.18 (d) of the ZSE Listing Requirements, holders of Willdale Limited’s Preference shares are hereby advised that the securities can no longer be traded on the ZSE with effect from 8 April 2019.”
With very few new listings have taken place over the past few years, and few expected in the medium-term, the bourse faces dwindling numbers with some companies on the brink already having suspended trading.