Getbucks gets nod to delist from ZSE
GETBUCKS Microfinance Bank Limited shareholders have passed a special resolution for the financial firm to delist from the Zimbabwe Stock Exchange (ZSE) after it indicated that continued listing was now a burden.
The green light was given during a sixth Annual General Meeting (AGM) of the shareholders held on 31 August.
Reads part of a special resolution, “That the Company’s shares be removed from the Main Board of the Zimbabwe Stock Exchange through voluntary termination of the listing on the Zimbabwe Stock Exchange in terms of section 11 of the ZSE Listing Requirements.”
ZIMBABWE Stock Exchange (ZSE)
In a recent circular to shareholders, GetBucks Company Secretary Mr Muchineripi Chigwendere detailed reasons for planned voluntary delisting.
He indicated that on December 9, 2022, the board of Directors held a meeting where they considered the termination of GetBucks Bank’s ZSE listing.
The board was of the view that in the current environment in Zimbabwe, a listing on the bourse is accruing little benefit to the company while incurring considerable costs, he noted.
“Trading of the GetBucks Bank shares has not represented a realistic valuation: as at the Last Practicable Date the Company was trading at ZWL38.50 (thirty-eight dollars and fifty cents in Zimbabwe dollars) per share which represents a market capitalisation of $44.8 billion or twenty-nine (29) times the value of shareholders equity in the business as at 31 December 2022, a valuation that makes equity capital raising initiatives difficult,” reads part of the circular.
It added that the inability to raise capital from institutional investors means that the listing has limited value in terms of a mechanism to raise capital.
Therefore, in the face of a difficult trading environment, the Board decided to propose to shareholders its delisting from the ZSE.
The entity said fees and levies charged by ZSE that are based on the market capitalisation have also become onerous expenses for it.
Due to regulatory requirements and lack of capital, it is deriving little benefits from the listing, hence the decision to opt for voluntary delisting from the bourse.
Last year, the financial service company indicated its desire to migrate the company’s shares listed on the ZSE to the US dollar-denominated Victoria Falls Stock Exchange (VFEX) in line with the firm’s recapitalisation plans.
The microfinance bank has been negotiating for a US$5 million recapitalisation package to enable it to meet the required minimum capital threshold set by the Reserve Bank of Zimbabwe (RBZ).
Another special resolution passed was on the establishment of Over-The-Counter Facility to Purchase Company’s Own Shares.
“That subject to Special Resolution 7 being carried by the requisite majority, the Company be authorised in advance, in terms of Section 128 of the Companies and Other Business Entities Act [Chapter 24:31] and Article 52 of the Company’s Articles of Association, to purchase the Company’s own ordinary shares which: (i) In aggregate in any one financial year, shall not exceed 9,856,785 of the Company’s issued ordinary share capital, for the Company cancelling them, subject to the availability of sufficient revenue reserves to undertake the transfer to a Capital Redemption Reserve Fund as required by the Companies and Other Business Entities Act [Chapter 24:31]; (ii) Value of such purchased ordinary shares shall not exceed the net asset value of the Company.”-chronicle
