Merchandiser in timber and glass, PG Industries Zimbabwe (PGIZ) yesterday voluntarily terminated its listing from the Zimbabwe Stock Exchange.
The termination comes after PG failed to meet the ZSE requirements according to the ZSE Chief Executive Officer (CEO) Mr Justin Bgoni in a statement
“Following the approval of the Secondary Scheme of Arrangement by shareholders and creditors of PGIZ on 15 September 2016 and fulfillment of all conditions precedent in December 2018, PGIZ applied for voluntary termination of its listing on Zimbabwe Stock Exchange Limited pursuant to paragraph 1.10E of the ZSE Listing Requirements,” Bgoni said.
“ZSE noted that PGIZ no longer met the minimum number of public shareholders for a listed company defined in paragraph 4.25(e) in Section 4 of the ZSE’s Listings Requirements.”
PGIZ was taken over by Dewei Investments which agreed to pay off the merchandiser’s shareholders and creditors last year.
The company, which was facing inadequate working capital, had accumulated expensive short-term bank borrowings resulting in huge losses due to high finance charges when the Indian firm took over.
Dewei agreed to buy the entire PG industries’ share register at a cost of $500 000.
The Indian firm agreed to make payments based on amounts owing as at December 31 2015, as per scheme terms.
Analysts had called PG technically insolvent during the suspension of the company’s shares in 2013.
“As required by Section 64 (a) (i) of the Securities and Exchange Act [Cap24.25], the ZSE sought and was granted permission by the Securities and Exchange Commission of Zimbabwe (“SECZ”) to delist PGIZ from the ZSE’s official list,” Bgoni said.
“In terms of Section 1.18 (d) of the ZSE Listing Requirements, holders of PG Industries (Zimbabwe) Limited’s securities are hereby advised that the securities can no longer be traded on the ZSE with effect from 8 April 2019.”