Fast food retailer, Simbisa Brands Limited will trade its shares for the last time on the Zimbabwe Stock Exchange (ZSE) this Friday to pave way for its delisting and subsequent migration to the Victoria Falls Stock Exchange (VFEX).
Simbisa shareholders approved the delisting and migration to VFEX at an extra-ordinary meeting held last week Friday.
“Following the publication of the Simbisa Brands Limited circular on 25 October 2022 and the approval granted during the Extraordinary General Meeting of Shareholders held on 18 November 2022, the investing public is advised that the last day of trading in Simbisa shares on the ZSE shall be Friday, 25 November 2022,” reads the circular issued the ZSE.
“Following the implementation of a halt in the trading of Simbisa shares on 25 November 2022, Simbisa Brands Limited will be delisted from the ZSE on 28 November 2022 and relisted on the Victoria Falls Stock Exchange on 2 December 2022. Investors will not be able to buy or sell Simbisa Shares during the period the halt is in effect.”
In a circular date Otcober 25, 2022 Simbisa said among other reasons for the migration to the VFEX was to attract foreign currency capital from investors to match the business’ foreign currency needs provided that its revenue streams are predominantly in USD for the Zimbabwean operations which are material to the group.
Furthermore, a USD indexed exchange would support the organizations most appropriate functional currency and its sizeable ownership in foreign assets
Several ZSE listed companies have expressed interest in migrating to the VFEX, which is a subsidiary of the ZSE trading in USD currency. Companies currently listed on the VFEX include Padenga Holdings, SeedCo International, Caledonia and Bindura Nickel Company.
National Foods is also set to follow in Simbisa’ steps after it announced that it would be delisting from the ZSE and listing on the VFEX.
The VFEX was established in 2020 as a subsidiary of the ZSE to kick start the Offshore Financial Services Centre (OFSC) earmarked for the special economic zone in Victoria Falls.