Fast food restaurant operator, Simbisa Brands Limited is set to terminate its listing on the Zimbabwe Stock Exchange (ZSE) and migrate to the Victoria Falls Stock Exchange (VFEX) following a decision by the board.
The VFEX is a subsidiary of ZSE that was established some two years ago to exclusively trade in foreign currency and position itself as a regional offshore capital market to attract global investors.
“The Directors of Simbisa Brands Limited (the “Company”) wish to advise all shareholders and the investing public that the Board has approved the delisting of the Company from the Zimbabwe Stock Exchange, immediately followed by its listing on the Victoria Falls Stock Exchange (the “Transaction”),” said the group in a statement to its shareholders.
“Further details of the Transaction will be provided to Shareholders once all regulatory processes have been finalized. Shareholders are therefore advised to exercise caution and consult their professional advisers when trading in the Company’s shares.”
The development will make Simbisa Brands, the fifth counter trading its shares on the VFEX joining SeedCo International, Padenga Holdings, Caledonia Mining Corp and Bindura Nickel Company.
The group operates a network of 524 owned restaurants under Chicken Inn (140 restaurants), Pizza Inn (129), Creamy Inn (87), Bakers Inn (58), Galito’s Africa (36), Nando’s (14), Steers (9) and other (51) brands such as Rocomama’s (Zimbabwe Only) and Vida E Caffé, located in Zimbabwe, Kenya, Zambia, Ghana, Mauritius and Namibia.
The group’s exit from the ZSE comes at a time there are serious concerns over government abrupt policy interventions in the bourse’s operations which has had adverse effects on returns for investors.
This situation has gotten worse as a result of the sharp devaluation of the local currency, which serves as the functional currency on the ZSE. This has caused real value to be lost and caused many foreign investors to sell their equities.
