ZSE predicts more takeovers

HARARE - The Zimbabwe Stock Exchange (ZSE) says company takeovers are likely to increase, as most listed stocks are undervalued.

“In the current environment where the market values of counters are generally at a discount to the net asset value of the companies, it is expected that the number of mandatory offers will increase,” said Alban Chirume, the bourse’s chief executive.

This comes on the back of several firms increasing shareholdings in listed companies.

In the past few months, foreigners have snapped up majority shareholding in ZSE-listed companies such as African Sun, Astra, and BancABC among others. The ZSE listings requirements compel an investor holding in excess of 35 percent of the issued share capital to make an offer to other shareholders within a certain period agreed upon with the local bourse.

Chirume said the essence of a mandatory offer, in its simplest terms, was to give other shareholders the chance to decide on whether they are comfortable with the vision of the new major shareholder.

“The counters listed above are in various stages of making the mandatory offer to minorities. There is a general misconception that making of the mandatory offer does automatically lead to the delisting of the counter and we do understand where this may emanate from,” he said.

 

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