Radar plans over-the-counter trading of shares

RADAR Holdings Limited, which voluntarily delisted from the local bourse over two years ago, intends to set up a trading desk to facilitate over-the-counter transacting of its shares.
The company will hold an extraordinary general meeting on August 28 to approve the trading platform, as well as the substitution of the company’s articles of association to allow the setting up of the platform.
Shareholders had not been able to trade or divest from the company since the current articles of association recognised the Zimbabwe Stock Exchange (ZSE) as the sole market at which the company shares can be traded.
“ …to facilitate the trading of company shares between current holders and or with third parties, the board recommends that a trading desk be set up under the administration of an independent third party,” the company said in circular to shareholders on Friday, adding that: “In order to avail a trading platform to the shareholders, the articles of association requires amendments to a number of articles to allow members to buy and sell company shares outside the ZSE platform”.
The company’s old articles have gone through several amendments over the years.
The board is proposing that the articles be repackaged into a single bound set compared to having an old set with multiple amendments.
The board is also proposing that the company’s transfer secretaries, Corpserve Limited, be appointed as the administrator of the internal trading desk “owing to the experience, professionalism and good rapport established with shareholders”.
Over the years, Corpserve has been performing the duties of the transfer secretaries of Radar.
The shareholders of the company will also be asked to approve a share buy back as well as a special dividend of 0,01957 cents per share amounting to $1 million.
Leading up to the company’s delisting in 2016, the company’s board and management had contended that the costs associated with its listing on the ZSE were compounding the group’s under-performance.
The company’s last publicly published results show that the company had an after tax loss of $288 071 in 2015 which was a decline from a profit of $288 006 in 2014.
The management and board of Radar had also argued that the size of the company and the illiquidity of its shares did not allow it to fully take advantage of being listed on the local bourse. During the 2015 calendar year, the group traded a mere 79 483 shares valued at $2 302.
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