TSL Limited shareholders have overwhelmingly backed the company’s plan to delist from the Zimbabwe Stock Exchange (ZSE) and migrate to the Victoria Falls Stock Exchange (VFEX), clearing the final shareholder hurdle for a move the board says will better reflect the group’s predominantly United States dollar business.
At a recent extraordinary general meeting, shareholders representing 76.4 perecent of the company’s registered shareholding attended in person or by proxy.
The approved resolutions include the voluntary delisting of TSL from the ZSE, listing on the VFEX, maintaining the same rights and privileges attached to the company’s ordinary shares after the migration, and authorising directors to complete all steps necessary to implement the transaction.
The vote follows the company’s announcement last month that it intended to leave the ZSE, with the delisting scheduled for 26 June before commencing trading on the VFEX three days later.
At the time, TSL said the move was driven by a mismatch between its operations and its stock market valuation.
More than 97 percent of the group’s revenue is now generated in US dollars, yet its shares continue to trade on the ZiG-denominated ZSE.
In a letter to shareholders issued before the meeting, board chairman Antony Mandiwanza argued that the company’s “profile, valuation, and growth prospects would be better reflected on the Victoria Falls Stock Exchange, to the benefit of both the company and its shareholders.”
Mandiwanza said the board believed the group’s valuation on the ZSE no longer adequately reflected “the intrinsic value of the group’s asset base” or the predominantly US dollar nature of its earnings. He added that a VFEX listing would improve valuation transparency, broaden access to foreign capital and enhance liquidity while allowing the company to benefit from incentives available on the US dollar-denominated exchange.
The migration comes amid a broader shift by Zimbabwean corporates towards the VFEX, as companies with substantial US dollar revenues seek a market they believe is better aligned with their operating currency. The move also adds to pressure on the ZSE, which has seen several high-profile companies pursue delistings in recent months.