CONSUMER staples concern, National Foods Holdings Limited, will delist from the Victoria Falls Stock Exchange (VFEX) and buy back 20% of its stock worth US$23,37 million after getting approval from its shareholders.
National Foods last month announced that it would delist from the VFEX to streamline its operations and concentrate on long-term strategic objectives.
It plans to buy back 20% of its shares of 13 647 198, which at last Friday’s stock price of US$1,7125 translated to US$23,37 million.
The delisting and the share buyback required shareholder approval which was unanimously granted on Wednesday last week.
In a statement after the extraordinary general meeting (EGM), National Foods said both the delisting and share buyback programme were both approved under special resolutions.
In a circular to shareholders ahead of last week’s EGM, National Foods said the delisting would grant the company increased flexibility to streamline its operations and concentrate on long-term strategic objectives.
It said the company no longer required capital from public equity markets in the near term, reducing the advantages of maintaining a VFEX listing.
It said a significant portion of its shares (75,18%) was held by two major shareholders, limiting the influence and participation of smaller retail investors, further supporting the rationale for delisting.
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The delisting, National Foods said, would enable the consumer staples concern to redirect spending on substantial regulatory and compliance expenses to initiatives that are more closely aligned with the company’s needs. It said the proposed share repurchase offer provided an opportunity for shareholders to access the full value of their shares and address the liquidity constraints associated with the shares’ limited trading activity on the VFEX.
The repurchase offer opened on December 20, 2024, and close on January 17, 2025. Following its completion, the delisting would take place on January 29.
