Harare – Manufacturer and supplier of brick products, Radar Holding Limited says it has amended the Company’s articles of association to allow members to buy and sell company shares outside the Zimbabwe Stock Exchange (ZSE).

Following the delisting of the company in 2016 the articles of association of the company remained aligned to a publicly traded company meaning holders of company shares have not been able to trade or divest from the company since the articles of associations recognised the ZSE as the sole market in which the company traded.

Addressing shareholders in the capital on Tuesday, Company’s Chairperson, Zondi Kumwenda said the Board of Directors recommended that the articles of association be substituted with a new set to allow members to buy and sell outside the ZSE.

“Holders of company shares have not been able to trade or divest from the company since the company's articles of association recognised the ZSE as the sole market at which company shares can be traded.

“In order to avail a trading platform to the shareholders the articles of association were amended to a number of articles to allow members to buy and sell company shares outside the ZSE platform and the Board recommends that articles be repackaged into a single bound set compared to having an old set with multiple amendments,” he said.

Kumwenda said the company’s previous set of articles of association had sections that referenced to outlawed and outdated statutes and this has been amended in line with the current and correct statues

“Certain sections of the articles of association have value denominated in the Zimbabwean dollar, these are no longer relevant in the prevailing economic environment and have been updated to reflect the prevailing functional currency.”

Kumwenda also said there will be a share buyback by the company to allow for the reduction in the number of members to reduce share register maintenance costs.

“Since dollarization your Board has noted some level of apathy amongst members of the company through low attendance at AGMs and low responses to other engagements by holders of the shares.

“The cost and commitment of administering a big register is very high. Since delisting in 2016 the board has had several shareholders intending to sell but have not had the right platform to do so.

“The board proposes to shareholders that there be a share buyback by the company to allow the reduction in the number of members thereby reducing the share register maintenance costs and also giving a platform for members desirous of exiting from the company,” he said.

Kumwenda told shareholders that the shares bought back would be retained for treasury purposes and the share buyback will run parallel to the internal trading desk subject to both being passed at this meeting.

He said the move will give members a choice of the platform on which to dispose of their shares during the share buyback period.

Founded in 1983 and headquartered in Harare, the company operates through the manufacturing and services segments.

The manufacturing segment involved in the manufacture and supply of products to the building sectors whilst the services segment includes property holdings and corporate office activities.

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