Innscor unbundles another unit

HARARE - Zimbabwe Stock Exchange-listed diversified group Innscor Africa (Innscor)’s retail and distribution unit, Axia Corporation Limited (Axia), is expected to start trading on the local bourse next month.

Axia houses Innscor subsidiaries such as the transport and logistics company, Transerv, home and furniture unit, TV Sales and Home, and Distribution Group Africa.

The group’s company secretary, Andrew Lorimer, yesterday said Axia acquired — through a scheme of reconstruction — the issued share capital of the companies comprising the speciality retail and distribution business together with relevant subsidiaries from Innscor in exchange for 541,593,440 shares in Axia.

The listing is however, subject to shareholder approval.

Innscor shareholders are expected to meet over the proposed unbundling of Axia through a dividend in specie on May 10, 2016.

The transaction will be one ordinary share in Axia for one ordinary share in Innscor already held and to seek the separate listing of Axia via an introduction of the entire issued share capital of 541,5 million ordinary shares on the ZSE.

This will see holders of Innscor ordinary shares registered at the end of day on May 6, 2016, receiving the dividend in specie less 10 percent withholding tax for individuals, trusts and non-resident shareholders.

“Shareholders and investors should note the last day of trading to be eligible for this dividend in specie is the 29th of April 2016. Axia’s Articles of Association provide for the issuance and trading of shares in dematerialised form.

“Shareholders with central securities depository (CSD) accounts will therefore have their CSD accounts credited with the respective entitlements,” he said.

Lorimer said shareholders without CSD accounts were to receive physical share certificates in respect of this dividend in specie.

“The new ZSE platform trades securities that are dematerialised only and shareholders should contact their stockbrokers for further information,” he said.

The latest development comes as the group recently separately listed its Quick Service Restaurants (QSR) unit, Simbisa, after the conglomerate unbundled the food business from main operations.

These listings come barely five years after the industrial holding company unbundled its crocodile farming business, Padenga Holdings, which was then listed on ZSE.

In January this year, Innscor announced that it was divesting from its high end supermarket chain business SPAR Corporate Stores as the group refocuses on its business.

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