POWERSPEED Electrical Limited (Powerspeed) shareholders on Monday unanimously approved a resolution that the company’s shares be removed from Zimbabwe Stock Exchange bourse through voluntary termination of the listing, effectively ending its 20-year run on the bourse.
This comes after a number of counters, including Dawn Properties, Falgold, ZimRe Property Investments and SeedCo have delisted from the ZSE this year.
Powerspeed, which listed on the ZSE in July of 2000, earlier this year, expressed its intent to delist with the actual date of the delisting expected to be December 18, 2020.
In terms of section 11 of the ZSE Listing Requirements to be effective, this resolution to delist must be passed by not less than 75% of the votes of all shareholders present or represented by proxy at the EGM.
According to results of an extraordinary general meeting held virtually on Monday, the company was also authorised to purchase its own ordinary shares, on condition the resolution to delist was approved.
Another resolution was that the company be authorised to pay the transaction costs for shareholders who, in terms of the offer and the share buyback scheme, hold less than 1 000 shares.
Terms of the share buyback are that this happens in the period between the date of publication of the notice and the date of delisting of the company.
The shares to be purchased in aggregate in any one financial year, shall not exceed
384 438 929 of the company’s issued ordinary share capital, for the company cancelling them, subject to the availability of sufficient revenue reserves to undertake the transfer to a capital redemption reserve fund as required by the Companies and Other Business Entities Act.
Apart from that, the value of such purchased ordinary shares shall not exceed the net asset value of the company.
“Accordingly, all resolutions proposed to shareholders were duly passed and the listing of Powerspeed Electrical Limited on the Zimbabwe Stock Exchange is expected to be terminated on December 18, 2020,” company secretary Martin Gurira said in a statement.
In a third quarter trading update for the period to June 2020, Gurira said Powerspeed will continue to focus on growth of shareholder value, with the confidence that it has the resources to survive short-term business disruptions.
He said volume throughput during the quarter has been erratic, as the national shutdown in April reduced throughput to almost zero for the greater part of the month.
“Subsequently, volumes have recovered however there have been substantial changes in product mix. Overally, volumes were marginally higher than the same quarter last year because of increased market share in a number of product groups,” Gurira revealed.