Migrating to VFEX to help National Foods raise capital
According to the group, the listing on the US$ denominated VFEX, will also enable Blanket employees who hold long term incentive plan awards to opt for ZDRs rather than cash upon vesting to allow them to receive a dividend paying investment referenced to an offshore share price.
National Foods Holdings Limited has announced plans to migrate to the Victoria Falls Stock Exchange (VFEX) in a move that will help the group raise capital in hard currency.
This will be preceded by its delisting from the Zimbabwe Stock Exchange (ZSE), where it is currently listed.
“The directors of National Foods Holdings Limited (the “Company”), wish to advise all shareholders and the investing public that the board has approved the delisting of the company from the Zimbabwe Stock Exchange, immediately followed by its listing on the Victoria Falls Stock Exchange (the “Transaction”).
“Further details of the transaction will be provided to shareholders once all regulatory processes have been finalised. Shareholders are therefore advised to exercise caution and consult their professional advisers when trading in the company’s shares,” said group legal counsel and company secretary Leigh Caroline Howes in a statement to stakeholders.
Natfoods will join Bindura, Caledonia, Padenga and Seed Co International that are already active on the USD denominated exchange. Several other companies have expressed interest to list on the exchange with Simbisa expected to debut on December 02, 2022 after delisting from ZSE the month.
GetBucks has also indicated plans to migrate to VFEX.
Meanwhile, Natfoods reported revenue for the year to June 30, 2022, rose 33 percent to $128,4 billion compared to the previous year, driven by volume growth and inflation driven prices.
Group’s total volumes grew 8 percent to 569,000 tonnes when compared to prior year.
Gross profit grew by 84 percent in absolute terms, mainly due to inflationary gains on raw material positions.
Operational expenditure grew by 37 percent year on year, with correction of some major cost lines occurring in real terms during the year.
At $14,74 billion, operating profit was 301 percent ahead of prior year whilst profit before tax increased by 1 390 percent to $20,4 billion.
The growth was driven by significantly increased interest costs in line with higher interest rates as well as a decline in equity accounted earnings of 41 percent, which was largely attributed to the disposal of Pure Oil during the period.
Included in the reported profit before tax is a profit on disposal of Pure Oil amounting $5,93 billion.
Profit for the year surged 8 436 percent to $18 billion from $211 million in the prior year.-ebusinessweekly
