First Mutual Properties Limited has initiated steps to voluntarily terminate its listing from the Zimbabwe Stock Exchange, citing strategic realignment and the need for greater operational flexibility as the company transitions into its next phase of growth.

In a circular to shareholders, Board Chairman Elisha K Moyo said the decision followed extensive deliberations by the board, which concluded that remaining listed was no longer aligned with the company’s evolving strategic priorities.

“I am writing to you in my capacity as the Chairman of the Board of Directors of FMP to present and commend to you the proposed voluntary termination of listing of the Company’s Shares from the Zimbabwe Stock Exchange,” Moyo said.

He emphasised that the move does not signal a weakening of the company’s operations or ambitions, noting that FMP remains one of Zimbabwe’s established property investment and management firms with a diversified portfolio of commercial, retail and industrial assets.

“The Proposed Transaction in no way diminishes the Company’s ambitions or its obligations to those who have invested in it,” he said.

According to the chairman, the costs and regulatory obligations associated with maintaining a public listing have become increasingly difficult to justify, particularly as the company does not anticipate raising capital from public equity markets in the near future.

“As the Company matures and its strategic priorities evolve, the Board believes that the obligations and cost structures associated with maintaining a public listing are increasingly difficult to justify in the absence of a near-term requirement to access public equity markets,” Moyo said.

He added that operating as a privately held entity would allow FMP to execute corporate actions more efficiently and engage long-term capital partners whose investment horizons better match property sector dynamics.

Unlisted, the company expects to gain “greater operational flexibility” while maintaining governance standards and transparency. “The highest standards of corporate governance, financial reporting, and stakeholder communication will be maintained following the Termination of listing,” Moyo assured shareholders.

As part of the transaction, majority shareholder First Mutual Holdings Limited will make an offer to acquire shares held by minority investors at a price of US$0.033 per ordinary share. The offer will be underwritten by Morgan & Co (Private) Limited.

“To provide all Minority Shareholders with a fair and structured opportunity to realise the value of their investment,” the chairman said, the acquisition offer will run concurrently with the delisting process.

Shareholders will vote on the proposal at an Extraordinary General Meeting scheduled for June 2, 2026, to be held physically at First Mutual Park in Borrowdale, Harare, and virtually via electronic participation.

For the delisting to proceed, at least 75 percent of eligible shareholders must approve the special resolution, excluding controlling shareholders and related parties. 

The meeting will also consider amendments to the company’s Articles of Association to remove references to the Zimbabwe Stock Exchange and authorise directors to implement the resolutions.

The Board has recommended that shareholders vote in favour of the proposals, with Moyo expressing confidence in the company’s future direction.

“I thank you for your continued support of FMP and look forward to the Company’s next chapter with confidence,” he said.