Building materials supplier, PG Industries Zimbabwe, has finally delisted from the Zimbabwe Stock Exchange (ZSE) six years after suspension of trading in its shares, as it no longer meets conditions for listing as per the local bourse’s requirements.
According to the ZSE, PG Industries applied for a voluntary delisting from the bourse that was granted effective April 8, 2019. Its shares were suspended from trading on ZSE in 2014.
After the approval of the Secondary Scheme of Arrangement by shareholders and creditors of PGIZ on September 15, 2016 and fulfilment of all conditions precedent in December 2018, PGIZ applied for voluntary termination of its listing on ZSE.
“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 of the Securities and Exchange Act, 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 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 April 8, 2019,” said ZSE.
PG Industries was bought by an Indian firm, Dewei Investments, which also made a commitment to provide fresh working capital and funds required for retooling the company.
Working capital constraints have been one of PG Industries major challenges resulting in the firm resorting to short term borrowings that were unsustainable, which pushed the company into perennial losses.
In October last year, Dewei committed to paying PG’s creditors as approved at the scheme of arrangement meeting held on September 2016. Payments would be made based on amounts owing as at December 2015.
Meanwhile, the ZSE also delisted Willdale’s preference shares following approvals from the regulator Securities and Exchanges Commission of Zimbabwe (SECZ).
“Following the redemption of 99,74 percent of the ZSE listed 10 percent semi-annual redeemable preference shares, Willdale Limited requested for the termination of listing of the Preference shares.
“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 April 8, 2019,” said ZSE.