RADAR Holdings Ltd (Radar) will next week hold an Extraordinary General Meeting (EGM) to amend its articles of association to enable directors to approve a share repurcha
The meeting will be held on August 19 in Bulawayo.
Radar said the effect of the adoption of the proposed provision to the articles was to enable the company to purchase shares in the capital of the company and provide the requisite authorisation for directors to undertake share repurchase programmes from time to time.
In terms of Section 78 (1) of the Companies Act, Radar can, as a listed company, purchase its own shares, provided its articles authorise this action and furthermore, the intended purchase is sanctioned in advance by an ordinary resolution approved at a shareholders’ meeting.
Shareholders’ approval is required to authorise the minimum and maximum price at which the shares can be acquired and the date on which the authority will expire.
Several firms have this year applied to the bourse to change their articles of association in order to repurchase their shares, which sometimes have almost doubled.
Radar is capitalised to the tune of $31 billion on the Zimbabwe Stock Exchange (ZSE) and has as one of its subsidiaries Border Timbers Ltd (Border) which is also listed on the bourse and is capitalised to the tune of $22 billion.
Border is currently engaged in a major battle with government over some of its land which was acquired for land resettlement purposes.
This is despite government policy that forestland and plantations among other agro-industries, would not be affected by land designations.
The company still awaits the outcome of official notification of withdrawals of the relevant Section 5’s, 7’s and 8’s from the Ministry of Lands, Agriculture and Rural Resettlement.
Radar said it intended that the maximum and minimum prices, respectively, at which such ordinary shares could be acquired would be 20% above and 25% below the closing traded price.
Failing this the mid price, at which such ordinary shares were traded on the ZSE, as determined over the five business days on which the share had traded immediately preceding the date of purchase of such ordinary shares by the company would apply.
Radar said a press announcement would be published as soon as it had acquired ordinary shares constituting on a cumulative basis in the period between the date of the EGM and the annual general meeting, 10% of the number of ordinary shares in issue prior to the acquisition.