First Mutual Properties shareholders back ZSE delisting

STAFF WRITER

Shareholders of First Mutual Properties (FMP) have overwhelmingly approved the company’s proposed delisting from the Zimbabwe Stock Exchange (ZSE), marking another high-profile departure from the local bourse amid growing concerns over value realisation and market liquidity.

The resolution was passed unanimously at an Extraordinary General Meeting (EGM) held on Tuesday, paving the way for the voluntary termination of the listing of FMP’s ordinary shares from the ZSE main board in terms of Section 11 of the ZSE Listing Rules.

Shareholders also approved the implementation of an offer by the company’s parent, First Mutual Holdings Limited (FMHL), or its appointed underwriter, to acquire shares held by minority investors at a cash consideration of US$0.033 per ordinary share, payable exclusively in United States dollars. The transaction will proceed on the terms outlined in the shareholder circular.

The approval represents the latest sign of a growing corporate retreat from the ZSE, as listed companies increasingly question the exchange’s ability to deliver fair valuations and efficient capital formation.

FMP’s move follows a series of notable exits from the market. Telecommunications giant Econet Wireless Zimbabwe voluntarily delisted after years of trading at a substantial discount to comparable regional peers.

Hospitality group African Sun Limited also migrated its listing to the Victoria Falls Stock Exchange (VFEX), while companies including National Tyre Services Limited, Truworths Limited and National Foods Limited have also exited the exchange in recent years.

The delisting comes despite a significant improvement in FMP’s financial performance.

For the financial year ended December 2025, the property group returned to profitability, supported by fair value gains on its investment property portfolio and disciplined asset management initiatives. Increased dollarisation of rental income further strengthened cash flow visibility and enhanced earnings quality.

Profit after tax surged to US$3.89m, reversing a loss of US$57.28m recorded in the prior year.

Revenue remained largely stable at US$8.97m, compared with US$9.03m in the previous period, while net property income remained resilient despite a challenging operating environment.