Shareholders give green light to NTS delisting

LIVINGSTONE MARUFU

National Tyre Services Limited (NTS) shareholders have approved the company’s delisting from the Zimbabwe Stock Exchange (ZSE), voting unanimously last week to remove the tyre distributor and retailer from the main board.

The decision follows an extensive internal evaluation which concluded that maintaining the ZSE listing no longer offers meaningful benefits or long-term sustainability for the business, which has been battling mounting operational pressures.

Company secretary Stewart Mandimika confirmed that at the Extraordinary General Meeting (EGM) held on Wednesday last week, shareholders gave full support to the exit plan.

“Shareholders are advised that all resolutions put to the vote at the Extraordinary General Meeting of Shareholders of National Tyre Services Limited held on Wednesday, November 19, 2025 were passed. Special Resolution – Termination of the listing of National Tyre Services Limited on the Zimbabwe Stock Exchange ‘THAT, the Company’s shares be removed from the Main Board of the Zimbabwe Stock Exchange through voluntary termination of the listing in terms of Section 11 of the ZSE Listings Requirements.’ Ordinary Resolution – Directors’ authority to give effect to the above Resolution ‘THAT, any Executive Director or Officer of the company be and is hereby authorised and empowered, for and on behalf of the company, to do or cause to be done all such acts or things to sign and deliver or cause to be signed and delivered all certificates, documents or other instruments as may be necessary, advisable or appropriate to effectuate, carry out and consummate the termination transaction contemplated by the aforegoing resolution in compliance with all regulatory conditions, authorisations, permissions and consents,’ Mandimika said.

Although Zimbabwe prohibits the importation of used tyres, second-hand products continue to flood the market through porous borders, undermining formal operators such as NTS. The company has also faced severe macroeconomic headwinds—exchange rate volatility, liquidity constraints, foreign currency shortages, and crippling power outages—further eroding viability.

At its retreading plant, unreliable electricity supply has restricted capacity utilisation to around 30%, causing estimated revenue losses of up to 40% of projected sales. The situation deteriorated to the point where NTS struggled to meet its listing obligations, including annual fees and adequate restocking.

Market activity has also been thin. Over the 12 months ending July 31, 2025, NTS shares did not trade for eight months, reflecting acute illiquidity and limited investor appetite on the local bourse.

To facilitate an orderly exit, major shareholder Radun Investments (Private) Limited has offered to acquire up to 94,513,956 ordinary shares—representing 37.73% of the issued share capital—at US$0.0248 per share. The offer gives minority shareholders a clear option to cash out ahead of the delisting.

“Shareholders are further advised that, in light of the above, the voluntary offer by Radun Investments (Private) Limited will open on Friday, November 21, 2025, and close on Friday, December 12, 2025, in accordance with the timetable contained in the circular to shareholders published on October 28, 2025,” Mandimika stated.

NTS is now expected to proceed with regulatory processes to finalise its withdrawal from the exchange, marking the latest in a growing list of companies opting to exit the ZSE in search of more flexible operational structures.