Innscor seeks shareholder nod to approve Axia unbundling

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ZIMBABWE Stock Exchange (ZSE) second largest company by market capitalisation, Innscor Africa is seeking shareholding approval to unbundle and separately list its retail and distribution business on the local bourse at an extraordinary general meeting next month.

This comes amid expectations that six new counters will be registered ZSE this year despite liquidity constraints that have seen market capitalisation plunging.

Innscor’s specialty retail and distribution business consists of three units; Distribution Group Africa, TV Sales and Home and Transerv. The three units will now fall under a new entity, Axia Corporation, which will list on the ZSE on May 17.
The group said the unbundling would be via a dividend-in-specie.

“The proposed unbundling, which is subject to shareholder approval, will be effected through a distribution of the entire issued share capital of Axia, being 541 593 440 ordianry shares of nominal value US$0,0001 each, to the shareholders of Insscor registered as such at the close of business on 6 May through a dividend inspecie,” the group said in a pre-listing statement.

As at 31 December 2015, the group’s retail and distribution business had an asset base US$103 million against total liabilities of US$51 million.

Innscor has over the years been unbundling its units to unlock shareholder value.

A listing drought on the bourse ended last year when Proplastics and Simbisa Brands were added on the ZSE register through unbundling.

In November 2010 IT unbundled its crocodile breeding business Padenga and last year disposed of its Spar Retail franchise in Zimbabwe.

It also plans to dispose of its SPAR Zambia franchise and Shearwater, its tourism unit that has operations in Zimbabwe, Zambia and Botswana.-Staff Writer

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