…as Khayah Cement seeks delisting amid rescue plan
By ETimes
HARARE — KHAYAH Cement Limited is preparing to delist its ordinary shares from the Zimbabwe Stock Exchange (ZSE), in what it describes as a strategic move to stabilize operations and implement a long-awaited corporate rescue plan.
In a circular issued to shareholders dated 28 April 2025, the Company laid out a detailed rationale for the voluntary termination, calling it a “temporary measure” aimed at ensuring long-term recovery.
The decision follows the Company’s placement under corporate rescue on 24 December 2024, and comes after more than a year of trading suspension on the ZSE.
According to the Corporate Rescue Practitioner, Bulisa Mbano, delisting will allow Khayah Cement to restructure away from the glare of public markets.
“Delisting enables confidential and efficient implementation of essential measures, such as debt negotiations, cost-cutting initiatives, and asset rationalization,” reads the cicular.
Critically, Khayah Cement acknowledges that maintaining a public listing has become unsustainable amid ongoing financial distress.
Listing compliance costs, such as stock exchange fees and financial reporting obligations, have further strained the Company’s fragile liquidity position.
“The Company is unable to meet certain listing requirements and costs associated with the listing, including but not limited to submitting timely financial reports and listing fees.”
Supporters of the move argue that delisting will free up valuable resources and allow management to focus exclusively on executing the corporate rescue plan.
The Circular emphasizes that delisting is intended to protect shareholder value rather than destroy it.
“The Company’s shares face prolonged uncertainty and illiquidity; voluntary delisting resolves this limbo, protects shareholder interests during restructuring, and allows focused recovery efforts,” the circular stated.
However, questions remain over the Company’s future direction and the fate of minority shareholders.
While the Circular promises that the delisting is not an endpoint, there is no definitive timeline for relisting or clear criteria for measuring success.
Shareholders are asked to take the Company’s assurances on faith, a risk that may not sit comfortably with all investors.
Despite the optimistic tone, the Circular implicitly concedes that Khayah Cement’s financial woes are severe, describing the delisting as necessary to avoid potential regulatory penalties and reputational damage.
The costs of executing the delisting, estimated at over US$100 000, have also raised eyebrows, given that every dollar spent on advisory and legal fees is one less available for operational recovery.
Furthermore, while management promises transparency and regular updates, the Circular stops short of spelling out the specific steps that will be taken to restructure debts, recapitalize operations, or attract new investment.
As the rescue plan unfolds, much will depend on the Corporate Rescue Practitioner’s ability to steer the Company through turbulent waters.
Khayah Cement’s shareholders will vote on the proposed delisting at an Extraordinary General Meeting scheduled for 19 May 2025. Approval requires a 75% majority vote, excluding the controlling shareholder Montanavalley (Private) Limited and its associates.
Khayah Cement’s proposed delisting represents a high-stakes maneuver, one that could either pave the way for a rebirth or deepen shareholder disenchantment if recovery falters.
“Delisting is not an endpoint but a strategic pause to enable recovery,” the circular reads further.
