Mashonaland Holdings seeks to buy back own shares
PROPERTY holdings and management company Mashonaland Holdings (Masholds) is seeking to buy back its own shares with considerations having been made which ensure that the company will remain financially sound after the transaction.
The company, in a notice to its shareholders of the annual general meeting to be held on March 11, 2021, said it was, in accordance with article 52 of the Articles of Association, authorised and empowered to purchase its own shares and issue up to a maximum of 200 00 000 shares, which is 11% of the issued share capital.
This was also upon such terms and conditions in such amounts as the directors of the company may from time to time determine.
Acquisitions shall be of ordinary shares which aggregate in any financial year shall not exceed 11% of the company’s issued share capital.
“After considering the effect the repurchase of the shares, the directors are confident that the company will be able to pay its debts for the period of 12 months after the date the notice of the annual general meeting, the assets of the company will remain more than its liabilities, the share capital and reserves of the company are adequate for a period of 12 months after the date of the notice of the annual general meeting, the company will have adequate working participate for the period of 12 months after the date of the notice of the annual general meeting.” Masholds said.
The authority is expected to expire on July 1, 2022 or next annual general meeting whichever is sooner.
The prices at which such ordinary shares may be acquired will not be more than 5% above and 5% below the weighted average of the market price at which such ordinary shares are traded on the Zimbabwe Stock Exchange as determined over the five business days immediately preceding the date of purchase of such shares by the company.
Meanwhile, the company in an update said property market fundamentals have remained depressed due to the difficult macro-economic climate and low business confidence.