Truworths Zim to Delist from ZSE Under Corporate R...

Truworths Zim to Delist from ZSE Under Corporate Rescue

Audrey Galawu

Assistant Editor

Truworths Zimbabwe Limited is set to delist from the Zimbabwe Stock Exchange as part of a corporate rescue strategy, following the adoption of a Corporate Rescue Plan on November 20, 2024.

According to a notice issued by Crowe Zimbabwe, a shareholders' meeting is scheduled for February 25, 2025, to implement Section 10 of the corporate rescue plan. The meeting will take place at the Celebration Centre in Borrowdale, Harare, from 9 AM to 12 PM.

The primary resolutions to be discussed at the meeting include the acquisition of Truworths’ shareholding by Valfin Investments, the delisting of Truworths from the ZSE, the resignation of the current board and the appointment of a new leadership team and a update on the approval of Valfin Investments as Truworths' new investor, paving the way for a merger of the two businesses.

The corporate rescue process suggests that Truworths has been facing financial or operational difficulties, prompting the restructuring plan.

The decision to sell the company’s shareholding for just US$1 raises questions about its financial health and the viability of its business model going forward.

Truworths' delisting follows a trend seen in Zimbabwe’s retail sector, where companies have struggled with foreign currency shortages, high inflation, and declining consumer spending. The acquisition by Valfin Investments could bring much-needed capital and strategic direction.

Shareholders must submit proxies via email by February 20, 2025. For further clarification, stakeholders have been directed to contact Dr. Oliver Mtasa or Mr. Raymond Sibanda at Crowe Zimbabwe.

The outcome of this meeting will be critical for Truworths' future, as it transitions into new ownership under Valfin Investments.

However, it remains unclear what operational changes the new investor will introduce and how they plan to revitalize the struggling retail giant.