ZSE Holdings restructuring goes for shareholder vote
Zimbabwe Stock Exchange Holdings Limited (ZSE Holdings) has announced its plan to list on the Zimbabwe Stock Exchange (ZSE) Main Board, pending shareholder approval at an Extraordinary General Meeting (EGM) set for October 8, 2024.
The listing is part of a broader restructuring effort aimed at improving market access and liquidity for the company.
According to the company’s circular released to shareholders, ZSE Holdings will acquire all shares in ZSE Limited and the Victoria Falls Stock Exchange (VFEX) as part of the restructuring. Shareholders will exchange their holdings in ZSE Limited for shares in ZSE Holdings, creating a unified entity.
“This restructuring is key to creating a more efficient and scalable corporate structure,” the circular explained, adding that ZSE Holdings’ self-listing will “unlock shareholder value and enhance the company’s ability to raise capital.”
One of the significant proposals includes a 1000-for-1 stock split, which will see ZSE Limited’s share capital increase substantially to meet the ZSE Main Board’s minimum share issuance requirements. The circular emphasised that the stock split would boost liquidity and improve accessibility for smaller investors.
ZSE Holdings also plans to introduce an Employee Share Option Scheme (ESOS), allocating up to 10 percent of its unissued shares for employee participation. This scheme aims to align the interests of employees and shareholders while promoting long-term growth.
“The introduction of the Share Appreciation Rights Plan (SARP) will reward employees based on the company’s performance, ensuring that their incentives are tied to shareholder returns,” the circular noted.
Additionally, the company seeks to attract 252 minority shareholders through a public or private placement to meet ZSE’s minimum spread requirements. Existing shareholders’ pre-emptive rights will be waived to accommodate this.
“The inclusion of new shareholders will increase market participation and ensure compliance with the regulatory minimum of 300 public shareholders,” the company stated.
Commenting on the listing, the directors of ZSE Limited said; “This move will position ZSE Holdings as a major player in Zimbabwe’s securities market, allowing for the introduction of new financial products and services.”
If approved, the restructuring and listing of ZSE Holdings on the Main Board is expected to improve corporate governance, transparency and the overall performance of the company. Shareholders will cast their votes during the EGM on October 8, 2024.-ebsnessweekl
