Khayah Cement to Delist from ZSE as Part of Rest...

Khayah Cement to Delist from ZSE as Part of Restructuring Efforts

Nyashadzashe Ndoro – Chief Reporter

Khayah Cement Limited (formerly Lafarge) will hold an Extraordinary General Meeting on May 19, 2025, for shareholders to vote on the voluntary termination of the company's listing from the Zimbabwe Stock Exchange.

The EGM is scheduled to take place at 10:00 hrs at Manresa Works, Arcturus Road, Greendale, Harare.

The proposed delisting follows the suspension of the company’s shares from trading on the ZSE on January 13, 2023, and the voluntary placement of Khayah Cement under corporate rescue on December 24, 2024. Bulisa Mbano of Grant Thornton (Zimbabwe) was subsequently appointed as the Corporate Rescue Practitioner.

According to a circular issued to shareholders, the delisting is a strategic move aimed at stabilising the company and facilitating its long-term recovery. The Corporate Rescue Practitioner, in consultation with financial advisors, has determined that delisting is in the best interests of the company and its stakeholders, as it would enable the development and implementation of a viable rescue plan.

The rationale for the proposed delisting includes the company’s inability to meet certain ZSE listing requirements, such as the timely submission of financial reports and the payment of listing fees. Delisting is also expected to allow the company to focus on critical restructuring tasks—including debt negotiations, cost-cutting measures, and asset rationalisation—without the scrutiny of the public market. Furthermore, the move aims to reduce costs associated with maintaining a public listing, freeing up resources for recovery efforts.

The circular emphasises that the delisting is intended as a temporary measure to support the company’s recovery and address the prolonged uncertainty and illiquidity caused by the current suspension. The Corporate Rescue Practitioner believes this step will help protect shareholder interests during the restructuring process and allow for focused efforts to stabilise operations, potentially paving the way for a future relisting.

At the EGM, shareholders will be asked to vote on resolutions approving the proposed termination of the listing. The process is being conducted in accordance with the Insolvency Act, the Companies and Other Business Entities Act (Chapter 24:31), and the ZSE Listing Requirements. The circular aims to provide shareholders with the necessary information to make an informed decision.

Khayah Cement, which is reportedly facing pressure from lower-cost competitors—particularly Chinese manufacturers in Zambia—views the delisting as a crucial step in its broader restructuring strategy to ensure long-term viability.