STRUGGLING manufacturing concern, Radar Holdings, is seeking shareholder approval to delist on the Zimbabwe Stock Exchange, the company announced on Tuesday.
The company said its current market capitalisation and illiquidity of shares do not allow it to fully take advantage of being listed on the ZSE. Last year, Radar traded a mere 79 483 shares valued at US$2 302.
“The reason for the proposed delisting is that the group continues to underperform. After tax profits declined from US$288 006 in FY14 to a loss of US$288 071 IN fy15. Furthermore, compounding the group’s underperformance are the costs associated with remaining listed on the Zimbabwe Stock Exchange,” reads a notice of the company’s extraordinary general meeting slated for February 23.
“After delisting the company will still remain a public company, however, it will not be a listed company. The delisting will mean that shareholders will no longer be able to trade their shares on the Zimbabwe Stock Exchange. Shareholders who might wish to sell their shares after delisting may still do so but the price will be by private valuation and agreement between buyer and seller, and the means of sale will be restricted to private deals.”
Radar was incorporated in 1949 as a multi-faced operation with the bulk of its interest being the construction industry. The company was listed on the local bourse in 1983.
Now with 61 active counters, the ZSE at its peak had 79. Over 10 counters have delisted from the ZSE in the past six years.
Counters that have been struck off the ZSE register include African Banking Corporation, Astra Holdings, Pelhams, Trust, Tractive Power, Interfresh Holdings and PG Holdings, among others.
This year, six new counters are expected to list on the Zimbabwe Stock Exchange (ZSE) this year despite liquidity constraints that have seen market capitalisation.