Zimre Holdings mulls delisting

HARARE - Insurance group Zimre Holdings Limited (ZHL) is considering delisting from the Zimbabwe Stock Exchange (ZSE), as the bourse remains depressed and is offering no shareholder value.

Albert Nduna, the group’s chief executive, said stocks are undervalued while it is increasingly difficult to raise capital on the 65-counter exchange.

“The valuation of shares on the ZSE worries shareholders and managers to the extent that some are advocating delisting,” he said.

“The stock exchange is there to raise capital and if you cannot do that, then it worries shareholders,” Nduna said, adding that “we are interrogating it (the delisting plan)”.

This comes as several listed corporates are voluntarily leaving the ZSE, citing that they are not realising value.

According to the 2014 Central African Stock Exchange (Case) handbook released in May, more delistings loom.

“…it is possible that at least two other companies will delist this year,” the report said.

In April, agro-focused firm Chemco delisted after having applied for voluntary suspension in 2012.

Apex Corporation, one of the oldest counters on the bourse, was struck off the ZSE’s register in July last year after applying for voluntary suspension a month earlier while it was under judicial management.

In December last year, horticultural concern Interfresh delisted following its shareholders’ approval to voluntarily leave the bourse.

Interfresh management argued that its shares had consistently traded at a discount to net asset value and raising capital at the current valuation on the ZSE had “proved rather limiting”.

This week, Interfin Financial Services was also struck off the bourse’s register.

Meanwhile, ZHL incurred a $113 627 loss in the half year to June 2014 compared to a $2,3 million profit realised in prior comparable period.

During the period, gross written premium (GWP) stood at $41,2 million, unchanged from that attained in the same period last year.

Operating profit declined by 42 percent to $1,6 million from $2,8 million on the back of increased claims.

Domestic operations contributed 52 percent of the GPW compared to 60 percent in the comparative period last year.

Total comprehensive income declined from $1,58 million to a negative $720 000. 

The group’s statement of financial position grew from $155,07 million in December 2013 to $160,77 million in June 2013 while shareholder funds decreased to $49,2 million from $55,3 million of prior comparable period.

Comments (2)

This all lie. They want to eye Noigeria and have goss premium of 35 mln in 1HY 14 and still telling the public of not been able of raising funds, instead they just want to suck their assets and leave public exposed with nothing, but this will backlash at one time and things will turn nasty for managers.

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