National Foods announces surprising Victoria Falls Stock Exchange departure
National Foods Holdings, Zimbabwe’s largest food manufacturer, is considering delisting from the Victoria Falls Stock Exchange (VFEX), a surprising move given the exchange’s growing attractiveness to local and foreign companies.
· Nehanda RadioVFEX, established in 2020 as a pioneer offshore financial services centre, aims to attract global investment by offering benefits such as raising capital in hard currency, tax incentives for shareholders, and flexible exchange control requirements.
Despite these advantages, National Foods Holdings is contemplating delisting due to potential transactions affecting its securities.
This decision seems counterintuitive, especially since foreign companies from the UK and South Africa are expressing interest in listing on VFEX.
The exchange’s unique features, including trading exclusively in US dollars, tax incentives, and flexible exchange control requirements, have drawn many companies.
National Foods has advised its shareholders to exercise caution and consult professional advisers when trading in the company’s shares.
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“The Group is considering delisting from the Victoria Falls Stock Exchange.
“Further details of the transaction will be provided to Shareholders once all regulatory processes and further deliberations have been finalized.
“Shareholders are therefore advised to continue to exercise caution and consult their professional advisers when trading in the Company’s shares,” the Group Legal Counsel and Company Secretary, Leigh C Howes said in a notice to shareholders.
National Foods has two major shareholders; Innscor Africa Limited (37.45%) and Tiger Brands (37.45%). The National Foods Workers Trust, which was established in 1985 by way of a donation, also owns 9.53% of the company.
Other VFEX listed companies include Caledonia Mining Corporation Plc (CMC.vx), African Sun Limited (ASUN.vx), Invictus Energy Limited (INVICTUS.vx), Simbisa Brands Limited (SIM.vx), Zimplow Holdings Limited (ZIMW.vx) and Padenga Holdings Limited among others.
Tanganda Tea Company Limited this week announced proposals to raise US$7.7 million and relocate its listing from the Zimbabwe Stock Exchange (ZSE) to VFEX.
BridgeFort Capital, formerly operating as Medtech Holdings, has revealed intentions to migrate its Class A and Class B shares to the VFEX through an introduction listing.