GetBucks mulls delisting

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GETBUCKS Microfinance Bank (GetBucks) says it is considering a restructure that may result in it delisting from the Zimbabwe Stock Exchange (ZSE).
GetBucks, which became the first micro-finance company to list on the local bourse in 2016, said the transaction, if successfully concluded, may have a material effect on the price of the company’s shares.

“GetBucks is contemplating a corporate restructuring of the company and establishing a holding company, MBC Holdings, that will own GetBucks Zimbabwe as a wholly-owned subsidiary and will result in the delisting of the company and listing of MBC Holdings,” the company said in a cautionary statement on Wednesday.
“Accordingly, shareholders and members of the public are advised to exercise caution and consult their professional advisors when dealing in the company’s shares until a full announcement is made or this cautionary statement is withdrawn,” the company said.
This comes as the microfinance institution has also announced the delay of its 2019 Annual General Meeting (AGM), which is probably linked to the restructuring plan.
“The principal reason for the delay is the board’s intention to hold the AGM and Extraordinary General Meeting on the same day,” Patrick Mashinga, GetBucks’ chief finance officer said in a statement last week.
“The latest date the AGM will be held is February 28, 2020. The board is confident that the necessary approvals enabling both meetings to be held before this date would have been sought,” he said.
In 2017, the company, through the issuance of a $30 million medium-term note, became the first entity to attempt to raise funding on the ZSE by way of a debt security.
The issue was, however, undersubscribed and the notes were placed privately by way of a “tap issue”.
A tap issue is a procedure that allows borrowers to sell bonds or other short-term debt instruments from past issues.
Last year, the ZSE signed a memorandum of understanding with GetBucks to operationalise the Zimbabwe Emerging Enterprise Market..
The market, once approved, will allow small and medium enterprises to list on a secondary market.
Last year, GetBucks successfully concluded a rights issue, raising an additional $5 million equity.
The bank also received a licence to operate a bureau de change and commenced operations in 2019.
In a trading update for the quarter ended September 30, 2019, the bank said its customer deposits increased to $8,3 million from $2,9 million in June 2019.
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