Innscor seeks to delist Colcom
INNSCOR Africa Limited group plans to delist one of its divisions, Colcom Holdings from the Zimbabwe Stock Exchange (ZSE). Colcom has been listed on the ZSE since 1993. In a cautionary statement, Colcom company secretary Mr Andrew Lorimer said yesterday that directors have received notification from its major shareholder (Innscor Africa) of the intention to extend an offer to minority shareholders for the purchase of their Colcom shares in exchange for Innscor shares.
“It is also the intention of the company to apply to the ZSE for a voluntary delisting in terms of Section 1 of the ZSE listing requirements. Shareholders will be provided with more details regarding the transaction by way of a circular in due course,” he said.
Mr Lorimer said shareholders are advised to exercise caution and should consult their professional advisors before dealing in the company’s shares.
In the first quarter of financial year 2017, Colcom’s was above prior comparable period on increased volumes traded and 34 percent growth in pigs delivered.
However, the food processor’s revenue increase did not push gross profit up for the period under review.
Volumes at Colcom Foods were up on the prior year but competitive pricing on the market and a significant shift in sales mix held back revenue growth to modest levels.
Pie volumes for the quarter were significantly up on prior comparable period. In the period under review, additional delivery of pigs allowed volume growth in carcasses and fresh pork.
The group’s auxillary pig production facility whose second phase came in line in March 2016 added 150 pigs per week to production.
As a result, it contributed to the 34 percent increase in pigs delivered in the quarter against those delivered in the same quarter last year.
Innscor holds a majority 79, 27 shareholding in Colcom, while other major shareholders who include Old Mutual Life and Old Mutual Zimbabwe Limited have 8,46 percent and 1,26 percent respectively.
Innscor, which in 2014 became the first Zimbabwean company to breach the $1 billion turnover mark, has restructured to focus on light manufacturing by unbundling Simbisa and Axia.