Natfoods eyes regional markets



Listed agro-processing firm, National Foods Limited (Natfoods) says its listing on the Victoria Falls Stock Exchange (VFEX) will enable the consumer confectionery concern to expand into regional markets.

Natfoods wants to delist from the Zimbabwe Stock Exchange (ZSE) and migrate to the foreign currency-denominated bourse.

Natfoods is expected to complete the VFEX process before year-end. It will be the sixth company to list on VFEX after Padenga Holdings, Caledonia Mining Corporation, Seed Co International, Nedbank and Bindura Nickel Corporation.

In a circular published this week, Natfoods chairman Todd Moyo told shareholders that the de-listing of Natfoods from the ZSE and the subsequent listing on the VFEX will help the company to grow within its existing portfolio as well as enter new and complementary categories.

“This move will boost Natfoods’ regional profile and commercial standing which will in time improve the entity’s regional expansion prospects, enhance Natfoods’ ability to settle its foreign currency liabilities and preserve value in an inflationary environment,” Moyo said.

He said listing on the VFEX facilitates the raising of US$ capital which in turn enhances the potential for Natfoods to grow “both organically and inorganically and the dispensation for foreign investors to repatriate proceeds from the disposal of shares is attractive to both existing and future investors”.

Moyo said VFEX provides favourable tax incentives for investors enabling the optimisation of returns and these include zero capital gains tax on VFEX resident and non-resident investors and a 5% dividend withholding tax for foreign investors.

On December 12, 2022, Natfoods shareholders will hold an extraordinary general meeting to discuss the VFEX listing.

Natfoods is expected to delist from ZSE on December 16, 2022. Subsequently, Natfoods is expected to complete its listing by December 23, 2022.

IH Advisory (Private) Limited, a licensed securities investment advisor with the Securities and Exchange Commission of Zimbabwe, will be the financial advisor for the proposed transaction.



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