Celsys seeks ZSE readmission

HARARE - Printing and related services group Celsys Limited (Celsys) seeks readmission to the Zimbabwe Stock Exchange (ZSE) after its majority shareholder, Blueberry International (Blueberry), cancelled a mandatory offer to minorities.

The group was voluntarily suspended from the bourse in August 2012.

“…Blueberry will no longer be making an offer to minorities but will instead seek to reduce their shareholdings to levels where such an offer is not mandatory,” Celsys said in its financials for the half year to February 2014.

In line with the development, Celsys said it had applied to the ZSE to lift the suspension and allow trading of its shares.

Blueberry indirectly holds 60 percent of Celsys.

It was acquired by an investment group led by Lovemore Chihota from Cambria Plc.

The move resulted in a still birth to its plans to make a secondary listing on the local bourse.

“Certain conditions precedent had to be met before the sale of Blueberry International could be completed and the company was not exactly certain that the transaction would be completed as planned,” Cambria said earlier this year.

According to ZSE’s listing requirements, any majority shareholder with over 35 percent shareholding should make a mandatory offer to minorities.

In the meantime, Celsys needs fresh capital to retool.

The company’s $100 000 overdraft facility expired during the period under review and was replaced by a short term $70 000 loan requiring monthly repayments.

Its cash balance at the close of the half-year period amounted to $32 500.

Despite revenue increasing to $1 million from $858 000, an increase in cost of sales and administrative expenses weighed down on the company’s earnings.

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