ZSE Delists Bridgefort, Paving Way for VFEX Listin...

ZSE Delists Bridgefort, Paving Way for VFEX Listing

Nyashadzashe Ndoro

Chief Reporter

The Zimbabwe Stock Exchange has announced the voluntary termination of the listing of Bridgefort Capital Limited's Class A and Class B preferred shares, effective November 26, 2024.

This move paves the way for the company’s listing on the Victoria Falls Stock Exchange.

According to a statement released by the ZSE, the decision follows a resolution passed by Bridgefort Capital Limited’s shareholders on November 15, 2024, to voluntarily terminate its listing on the ZSE. The ZSE stated that Bridgefort Capital Limited had applied for the voluntary termination of its listing in accordance with Section 11 of the ZSE Listing Requirements.

The Securities and Exchange Commission of Zimbabwe granted permission for the delisting, as required by the Securities and Exchange Act. As a result of the delisting, holders of Bridgefort Capital Limited’s securities are advised that they can no longer trade on the ZSE, effective November 26, 2024.

The company plans to migrate its Class A and Class B listings to the VFEX and list by way of introduction. The VFEX listing is subject to shareholder and regulatory approvals. Bridgefort Capital Limited’s board has approved the termination and the subsequent listing of its shares on the VFEX.

The company cited several benefits of the proposed transactions, including access to a growing fintech, funeral services, funeral assurance, and financial services portfolio. The VFEX listing will also enhance the company’s ability to attract capital inflows into Zimbabwe, broaden its investor base, and access USD capital.

Bridgefort Capital Limited’s Class A portfolio primarily distributes consumer goods manufactured by Amka Products in South Africa and Chicago Cosmetics. The company’s Class B portfolio consists of property and currently holds bank and cash balances of US$120,000.

The VFEX listing will be preceded by the issuance of 83,440,639 Bridgefort Capital Class A preferred shares to Diaspora Kapita shareholders, along with various parties owed sums of money by Diaspora Kapita and its subsidiary or associated companies. After the allotment, Bridgefort Capital Limited will own 100% of Diaspora Kapita.

The transaction will also involve the issuance of 2,486,599 Class A preferred shares to various holders of claims against AgroStrong, which will be converted to equity in AgroStrong. Bridgefort Capital Limited will own 99.94% of AgroStrong after the conversion.

The company will also issue 84,615,385 Class A preferred shares to the placement agent to unlock capital for the Class A portfolio as and when required. Each of the ordinary shares in issue will be split into 0.15 ordinary shares and 68.69883 Class A preferred shares.

Diaspora Kapita, established in 2014 in South Africa, is a collaborative venture between Zimbabweans living in the diaspora and their counterparts in Zimbabwe. The group provides a range of services and investment opportunities tailored to the diaspora community.

The listing on the VFEX and the conclusion of the proposed transactions are subject to other key conditions, such as obtaining exchange control approval from the Reserve Bank of Zimbabwe (RBZ) and the South African Reserve Bank (SARB) for the proposed transactions. Approval from the VFEX listings committee for the listing of Bridgefort Class A and B preferred shares on the VFEX is also required.