• Mon. Apr 15th, 2024

GetBucks still working on delisting

ByEconomic Times

Mar 29, 2023

By ETimes

GetBucks Financial Services which currently in negotiations for a US$5 million recapitalisation to enable the bank to meet required minimum threshold set by the Reserve Bank of Zimbabwe (RBZ) has said it is contemplating a delisting.

The microfinance bank is listed on the Zimbabwe Stock Exchange (ZSE) and has been struggling to meet the minimum capital requirements.

GetBucks said they are still in negotiations of capital incremental with a tune of US$5 million equivalent in local dollars being floated around. However, the bank abandoned its proposal to migrate to VFEX as originally planned in 2022.

In a cautionary statement issued today the bank said, “Further to the cautionary announcement dated 27 February 2023 advising of the Company’s consideration to delist from the Zimbabwe Stock Exchange(ZSE), shareholders are advised that the preliminary processes of the delisting are still underway and as such the Company will issue a delisting circular with full details to shareholders in due course.”

In December 2022 the company advised of its termination of the process of migration of the Company’s listed securities from the Zimbabwe Stock Exchange (ZSE) to the Victoria Falls Stock Exchange (VFEX). Additionally, shareholders were advised that the company was now considering a full delisting of its securities on the ZSÉ.

“Shareholders are also advised that recapitalization negotiations are still ongoing. The full impact of the delisting and recapitalization is still being determined and, if successful, may have a material effect on the price of the securities,” added GetBucks.

According to the central bank thresholds Tier 1 banks, large indigenous commercial banks and all foreign banks are now required to have US$30 million minimum capital.

Tier 2 commercial banks, merchant banks, building societies, development banks, finance and discount houses are now required to have a US$20 million minimum capital, while Tier 3 deposit-taking microfinance banks, are required to have US$5 million minimum capital.

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In a notice to shareholders in February 2022, GetBucks company secretary, Michael Munemo advised shareholders that negotiations for a recapitalisation are still in progress, the full impact of which is still being determined and if successfully concluded may have a material effect on the price of the company’s securities.

“Shareholders are advised that the board of directors has since approved the recapitalization which will result in the increase in capital of the Zimbabwean Dollar equivalent value of up to US$5 million at the prevailing Reserve Bank of Zimbabwe auction rate,” said Munemo.

As a result, advisors, an underwriter and other related parties were identified and appointed.

“It is anticipated that a circular to members will be issued and a notice of an extra-ordinary General meeting of members will be published before the end of the first quarter of 2022.The transaction will be subject to all legal and regulatory approvals prior to the initiation of the process,” the bank said at the time.

Accordingly, shareholders have been advised to continue exercising caution when dealing in the company’s securities until a full announcement is made – Harare

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