Radar Holdings, the parent company of struggling brick maker MacDonald Bricks, applied for voluntary termination on October 6, 2015 but its listing was terminated on April 29 the following year.
Until May 31, 2013, Radar was also the parent company of Border Timbers which was demerged through a dividend in specie.
At the time of delisting, the company had reported successive after tax losses of $288 000.
However, the company’s articles of association only recognised the ZSE as the sole market on which its shares could be trade.
“Holders of company shares have not been able to trade or divest from the company since the company’s articles of association recognised the ZSE as the sole market at which company shares can be traded,” chairperson Zondi Kumwenda told shareholders today.
“In order to avail a trading platform to the shareholders the articles of association were amended to allow members to buy and sell company shares outside the ZSE platform.”
The company’s articles of association had been amended in line with the current laws.
“Certain sections of the articles of association have value denominated in the Zimbabwean dollar, these are no longer relevant in the prevailing economic environment and have been updated to reflect the prevailing functional currency,” Kumwenda said.
The company planned a share buy back to reduce the number of shareholders and share register maintenance costs.
“The cost and commitment of administering a big register is very high. Since delisting in 2016 the board has had several shareholders intending to sell but have not had the right platform to do so,” he said.
“The board proposes to shareholders that there be a share buyback by the company to allow the reduction in the number of members thereby reducing the share register maintenance costs and also giving a platform for members desirous of exiting from the company.”
In addition to MacDonald Bricks, Radar rents residential and commercial properties. – The Source