African Sun moves to delist from Victoria Falls Stock Exchange
TOP hospitality group, African Sun Limited (ASL), has tabled a decision to delist from the Victoria Falls Stock Exchange (VFEX) in a bid to ease pressures and pursue turnaround priorities. The details are contained in a circular to minority shareholders who were offered a share repurchase at US$5,17. ASL said the decision was based on […] The post African Sun moves to delist from Victoria Falls Stock Exchange appeared first on NewZimbabwe.com.
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TOP hospitality group, African Sun Limited (ASL), has tabled a decision to delist from the Victoria Falls Stock Exchange (VFEX) in a bid to ease pressures and pursue turnaround priorities.
The details are contained in a circular to minority shareholders who were offered a share repurchase at US$5,17.
ASL said the decision was based on several strategic factors.
“Delisting will provide greater operational flexibility, allowing African Sun to pursue its long-term strategic and turnaround priorities without the additional constraints and short-term pressures associated with maintaining a public listing,” the hospitality concern said.
ASL said it had no wish to raise capital from the market, rendering the need to maintain the listing very limited. It cited low liquidity and thin trading in ASL shares as having historically restricted shareholders’ ability to realise value or exit, presenting the shareholders with an opportunity to unlock value.
In addition, ASL said delisting will materially reduce regulatory, reporting and compliance costs, enabling management to redirect time and resources toward operations, refurbishing key assets, improving service delivery and driving sustainable growth across the portfolio.
The group said some of the benefits to shareholders who accept the offer include the realisation of true share value, avoidance of market constraints, simplified exit mechanism and the opportunity for reinvestment, among other factors.
Capital Gains Tax exemption may also apply, subject to individual shareholder circumstances and prevailing tax authority provisions.
“The management board supports the decision for African Sun to terminate its VFEX listing and to offer to purchase the Shares of Shareholders who do not wish to retain their investment in a privately held, unlisted entity. The Board recommends that Shareholders approve the relevant Resolutions,” the Circular added.
The post African Sun moves to delist from Victoria Falls Stock Exchange appeared first on NewZimbabwe.com.
