• First Mutual Properties shareholders approved all four delisting resolutions with 100% of votes cast in favour at the EGM held on 2 June 2026
• The delisting removes the ZSE’s last dedicated property vehicle, shifting listed pure-play Zimbabwe real estate exposure to the VFEX through Tigere REIT and Eagle REIT
• The US$0.033 per share buyout offer places renewed scrutiny on ZSE valuation mechanics, especially for USD-asset-backed companies priced through a ZWG-denominated market

Harare-  First Mutual Properties Limited, one of the only purely property-focused listed entity on the Zimbabwe Stock Exchange, has voted itself off the exchange. At an Extraordinary General Meeting held on Tuesday 2 June 2026, shareholders approved all four resolutions required to execute the delisting with 100% of votes cast in favour across every resolution.

The resolutions covered the voluntary termination of the ZSE listing, the acceptance of an offer by First Mutual Holdings Limited to acquire minority shareholders' ordinary shares at USD 0.033 per share payable in United States Dollars, the amendment of the company's Articles of Association to remove all references to the Zimbabwe Stock Exchange, and the authorisation of directors to implement the resolutions.

With FMP gone, the ZSE loses one of its dedicated property counters, leaving Mashonaland Holdings as the main remaining pure property exposure on the exchange. Investors seeking USD-denominated listed real estate exposure must now look to the VFEX, where Tigere REIT and Eagle REIT provide alternative property structures.

The departure is the market's verdict on whether the ZSE's ZWG pricing mechanism can adequately value a company whose assets are denominated in USD, whose revenues are collected in USD, and whose underlying worth is most faithfully expressed in USD.

The 100% approval rate across all four resolutions is the procedural headline. First Mutual Holdings Limited is the majority shareholder of First Mutual Properties. The 100% result is a reflection of offer acceptance mechanics rather than contested unanimous agreement, and reading it as enthusiastic shareholder endorsement of management strategy misses the specific process producing it.

The offer price of USD 0.033 per ordinary share is the number that requires the most analytical scrutiny and that the EGM results announcement does not contextualise. First Mutual Properties is Zimbabwe's largest listed commercial real estate company, with a property portfolio concentrated in Harare's central business district covering office, retail, and light industrial assets. Its most recent published results confirmed Net Property Income growth of 30%, profit growth of 91%, and a revenue collections rate of 52%, the last of which is the operational constraint that has depressed the company's financial performance relative to the quality of its underlying property assets.

The specific question that USD 0.033 per share raises is whether the offer price reflects the net asset value of the underlying property portfolio or whether it reflects the depressed earnings multiple of a company with a 52% collections rate priced on an exchange that has systematically undervalued USD-asset-backed businesses through ZWG denomination. The pattern is documented and consistent.

TSL said its ZSE valuation did not adequately reflect its intrinsic value and the predominantly USD nature of its revenues. Econet said the same. Proplastics said the same. First Mutual Holdings, the parent that made this offer, said the same when pursuing its own exchange migration. Every one of those companies identified the ZSE's ZWG pricing mechanism as the instrument producing the undervaluation, and every one of them acted on that assessment by leaving.

The USD 0.033 buyout offer for FMP minority shareholders is therefore priced in the same ZWG-distorted market context that the parent has simultaneously identified as inadequate. Whether USD 0.033 per share represents fair value for a commercial property portfolio of FMP's scale and location quality in Harare's central business district is a question the independent fairness opinion, published in the circular preceding the EGM, addressed.

The fact that 100% of remaining shareholders accepted the offer confirms the offer was accepted. It does not confirm the offer was fair to the shareholders who had already sold at lower market prices in the weeks before the EGM record date, whose exit was shaped by the same ZWG pricing mechanism that motivated the transaction in the first place.

The ZSE's Structural Erosion and What Remains

FMP's departure extends a pattern whose direction is now sufficiently clear to constitute a structural trend rather than a series of company-specific decisions. The ZSE is progressively losing the USD-revenue-generating, hard-asset-backed companies whose valuations are most distorted by ZWG pricing.

What remains on the ZSE is an exchange whose listed companies are increasingly either genuinely ZWG-denominated operations for whom the pricing mechanism is appropriate, or businesses whose majority shareholders have not yet concluded that the cost and friction of migration or privatisation is justified by the valuation recovery it would deliver.

 The VFEX's seventeen listed securities and growing liquidity, reinforced by each successive departure from the ZSE, create a self-reinforcing dynamic, as the ZSE loses companies whose USD revenues attract USD investors, those investors consolidate on the VFEX, deepening VFEX liquidity, improving VFEX price discovery, and raising the valuation gap between the two exchanges that makes each subsequent ZSE departure more financially justified than the one before.

First Mutual Holdings has made its calculation about FMP's worth on the ZSE versus its worth off it. The EGM on 2 June 2026 recorded that calculation at 100%.

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