Property developer, ZIMRE Property Investment (ZPI) is set to delist from the Zimbabwe Stock Exchange (ZSE) once negotiations for the acquisition of the company’s entire issued share capital by its holding company, ZIMRE Holdings Limited (ZHL) are successful, 263Chat Business has established.
ZHL and ZPI are both listed on the local bourse with the former specializing in re-insurance business while the latter being the group’s property management and development arm.
The two entities have since advised its shareholders and the investing public to be cautious of their securities.
“Shareholders are advised that Zimre Holdings Limited (“ZHL”) and Zimre Property Investments Limited (“ZPI”) have entered into negotiations for the acquisition of the entire issued share capital in ZPI (“the Transaction”). It is intended that, if successful, the Transaction will culminate in the voluntary delisting of ZPI shares from the Zimbabwe Stock Exchange (“ZSE”). Accordingly, shareholders are advised to exercise caution when dealing in the securities of ZHL and ZPI until a full announcement is made,” the companies said in a joint statement published on the ZSE website.
ZHL also runs property businesses across the Southern African region.
ZPI recently completed mega projects such as the Sawanga Mall in Victoria Falls and the Nicoz House Bulawayo meant for student accommodation, both of which are contributing meaningfully to the company’s revenue streams.
The property developer posted a profit rebound of ZWL$ 182.18 million last year from a loss position of ZWL$76.33 million in 2018.
The Victoria Falls based- Sawanga Shopping Mall is currently at 92% occupancy level.
However the development comes at a time the property sector is facing a myriad of challenges including low occupancy and rental defaults owing to a challenging macro-economic environment.
Meanwhile, ZIMRE Holdings Limited (ZHL) has declared a dividend of $3,1 million for the financial year ended December 31, 2019, the company said in its latest notice to shareholders.
