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Innscor Africa : 2023-01-25 Innscor VFEX Listing Circular – Marketscreener.com

VFEX Listing Circular
Our passion for value creation
(Innscor Africa Limited, incorporated in Zimbabwe in 1994 under Company Registration Number 3867/94)
THIS CIRCULAR IS IMPORTANT AND
REQUIRES YOUR IMMEDIATE ATTENTION
CIRCULAR TO SHAREHOLDERS
Relating to and seeking approvals for:
The Termination of Innscor Africa Limited’s listing from the Zimbabwe Stock Exchange and the Subsequent Listing by Introduction of Innscor Africa Limited on the Victoria Falls Stock Exchange (“The Proposed Transaction”)
and incorporating
NOTICE OF AN EXTRAORDINARY GENERAL MEETING
Notice of an Extraordinary General Meeting of the members of Innscor Africa Limited (“Innscor”), to be held physically at the Royal Harare Golf Club situated at 5th Street Extension, Harare, Zimbabwe and virtually by electronic means, on Wednesday, 15 February 2023, at 1000 hours. The notice was published on Wednesday, 25 January 2023 in accordance with the Listings Requirements of the Zimbabwe Stock Exchange (“ZSE”) and the Companies and Other Business Entities Act (Chapter 24:31) of Zimbabwe, as set out at the end of this Document. Shareholders are asked to complete and return the attached form of proxy in accordance with the instructions printed thereon, as soon as possible, but not later than 1600 hours, on Monday,
13 February 2023. Electronic copies can be downloaded from https://www.innscorafrica.com/.
Financial Advisors |
Sponsoring Brokers |
Legal Advisors |
Transfer Secretaries |
This Circular is neither a prospectus nor an invitation to the public to subscribe for shares in the Company but is issued in compliance with the Listings Requirements of the ZSE, for the purpose of giving information to the public regarding the Proposed Transaction as more fully set out in this Circular. The Circular is only available in English. Additional copies of this Circular may be obtained from the Company Secretary at 1 Ranelagh Road, Highlands, Harare or IH Securities Private Limited situated at Block 3, Tunsgate Business Park, 30 Tunsgate Road, Mount Pleasant, Harare. Electronic copies can be accessed online via the Company’s website: www.innscorafrica.com.
If you are in any doubt as to the action you should take, you should immediately seek advice from your stockbroker, bank manager, legal practitioner, accountant, or other professional advisors. If you no longer hold any shares in Innscor, you should send this Circular, as soon as possible, to the stockbroker, bank or other agents through whom the sale of your shareholding in Innscor was executed, for onward delivery to the purchaser or transferee of your shares.
All the Directors of Innscor, whose names are given in paragraph 3.2 of the Circular, collectively and individually, accept full responsibility for the accuracy of the information given and certify that, to the best of their knowledge and belief, there are no other material facts, the omission of which would make any statement in the Circular false or misleading, and that they have made all reasonable enquiries to ascertain such material facts and that this Circular contains all information required by law.
The Directors confirm that the Circular particulars include all such information within their knowledge (or which it would be reasonable for them to obtain by making enquiries) that investors and their professional advisors would reasonably require and reasonably expect to find for the purpose of making an informed assessment of the assets and liabilities, financial position, profits and losses and prospects of the issuer and of the rights attaching to the securities to which the Listing particulars relate.
The Company’s lead financial advisors, sponsoring broker, legal advisors and transfer secretaries have consented in writing to act in the capacity stated and to their names being stated in the Circular and have not withdrawn their consents prior to the publication of this Circular.
Date of issue of this document: Wednesday, 25 January 2023
Innscor Africa Limited Listing Circular
Table of
Contents
Corporate Information |
3 |
Forward-Looking Statements |
4 |
Interpretation and Definitions |
5 |
Salient Features of the Proposed Transactions |
7 |
Chairman’s Statement |
9 |
PART I: DETAILS OF THE PROPOSED TRANSACTION |
|
Overview of The Proposed Transaction |
10 |
Overview of Innscor Africa Limited |
11 |
Corporate Governance |
16 |
Capital Commitments and Contingent Liabilities |
19 |
Material Contracts |
20 |
Litigation Statement |
20 |
Share Information |
21 |
Experts’ Consents |
24 |
Regulatory Issues |
24 |
Documents and Consents Available for Inspection |
24 |
Directors’ Responsibility Statement |
25 |
PART II: APPENDICES |
|
Appendix I – Independent Auditor’s Report to the |
26 |
Shareholders of Innscor Africa Limited (2022) |
|
Appendix II – Independent Auditor’s Report to the |
30 |
Members of Innscor Africa Limited (2021) |
|
Appendix III – Independent Auditor’s Report to the |
36 |
Members of Innscor Africa Limited (2020) |
|
Appendix IV – Innscor Africa Limited Historic Financial Statements |
41 |
Appendix V – Notice of Extraordinary General Meeting |
46 |
Appendix VI – Form of Proxy |
47 |
CORPORATE INFORMATION
The information below is given in compliance with the requirements of the Zimbabwe Stock Exchange.
Registered Office |
Edward Building |
1st Street/Nelson Mandela Avenue, Harare |
|
Company Secretary |
A.D. Lorimer |
& Physical Address |
1 Ranelagh Road |
Highlands, Harare |
Innscor derives professional services from the following:
Financial Advisors |
Inter-Horizon Advisory (Private) Limited |
|
Block 3, Tunsgate Business Park |
||
30 Tunsgate Road, Mount Pleasant, Harare |
||
Sponsoring Broker |
Inter-Horizon Securities (Private) Limited |
|
Block 3, Tunsgate Business Park |
||
30 Tunsgate Road, Mount Pleasant, Harare |
||
Legal Advisors |
Kantor and Immerman |
|
Dube, Manikai and Hwacha |
||
Gill, Godlonton & Gerrans |
||
Independent Auditors & |
BDO Zimbabwe Chartered Accountants |
|
Reporting Accountants |
Kudenga House, 3 Baines Avenue, Harare |
|
Transfer Secretaries |
Corpserve Registrars (Private) Limited |
|
2nd Floor ZB Centre |
||
Corner 1st & Kwame Nkrumah Avenue |
||
Harare |
||
Principal Bankers |
AFC |
First Capital Bank Zimbabwe |
Hurudza House |
Barclay House, Corner First Street & |
|
14-16 Nelson Mandela Avenue |
Jason Moyo Avenue, Harare |
|
Harare |
||
Banc ABC |
Nedbank Zimbabwe |
|
1 Endeavour Crescent |
14th Floor, Old Mutual Centre |
|
Mount Pleasant Business Park |
Corner 3rd Street & Jason Moyo Avenue |
|
Mount Pleasant, Harare |
Harare |
|
CABS |
NMB Bank Limited |
|
Northern Close |
19207 Liberation Legacy Way |
|
Northridge Park |
Borrowdale, Harare |
|
Highlands, Harare |
||
CBZ Bank |
POSB |
|
5 Campbell Road |
6th Floor, Causeway Building |
|
Pomona |
Corner 3rd Street and |
|
Borrowdale, Harare |
Central Avenue, Harare |
|
Ecobank Zimbabwe |
Stanbic Bank Zimbabwe |
|
Block A, Sam Levy’s Office Park |
59 Samora Machel Avenue, |
|
2 Piers Road |
Harare |
|
Borrowdale, Harare |
||
FBC Bank Zimbabwe |
Steward Bank |
|
6th Floor, FBC Centre |
Livingstone House |
|
45 Nelson Mandela Avenue, |
79 Livingstone Avenue, Harare |
|
Harare |
||
Standard Chartered Bank Zimbabwe |
||
2nd Floor, Mutual Centre, |
||
Harare |
Innscor Africa Limited Listing Circular
FORWARD-LOOKING STATEMENTS
This Circular includes forward-looking statements regarding Innscor. Forward-looking statements are those other than statements of historical facts included in this Circular. They include, without limitation, those regarding Innscor’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Innscor’s products and services). Any statements preceded by, followed by, or including the words “believes”, “expects”, “aims”, “estimates”, “anticipates”, “may”, “will”, “should”, “could”, “intends”, “plans”, “seeks”, or similar expressions, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause Innscor’s actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are inherently based on numerous assumptions regarding Innscor’s present and future business strategies and the environment in which Innscor will operate in the future. These forward-looking statements speak only as at the date of this Circular. The Directors of Innscor expressly disclaim any obligation or undertaking to disseminate, after the distribution of this Document, any updates or revisions to any forward-looking statements contained herein to reflect any change in their expectations with regard thereto or any change in events, conditions, or circumstances on which any such forward-looking statement is based unless legally required to do so.
INTERPRETATION AND DEFINITIONS
In this document, unless otherwise stated or the context otherwise requires, the words in the first column have the meanings stated opposite them in the second column, words in the singular shall include the plural and vice versa and words importing natural persons shall include juristic persons, whether corporate or incorporate and vice versa.
“Board” or “the Directors” |
The |
Board of Directors of Innscor; |
|
“Broker” |
Any person or company registered as a member with the ZSE and authorised to buy and sell shares |
||
and other securities on behalf of customers; |
|||
“CBD” |
Central Business District; |
||
“Circular” or “the Document” |
This document dated Wednesday, 25 January 2023, including the appendices hereto, addressed to |
||
Innscor Shareholders which sets out the terms and conditions of the Proposed Transaction; |
|||
“Companies Act” |
The |
Companies and Other Business Entities Act (Chapter 24:31); |
|
“Conditions Precedent” or “Delisting |
The |
Conditions Precedent to which the delisting and the listing by introduction is subject as set out |
|
Conditions Precedent” |
in paragraph 1.2; |
||
“EGM” |
Extraordinary General Meeting of Innscor Shareholders convened in terms of the Companies Act, |
||
at which Innscor Shareholders will vote on the Proposed Transaction, to be held at 1000 hours |
|||
on Wednesday, 15 February 2023, physically at the Royal Harare Golf Club situated at 5th Street |
|||
Extension, Harare, Zimbabwe, and virtually by electronic means via the link, “https://escrowagm. |
|||
com/eagmZim/Login.aspx”; |
|||
“Exchange Control Regulations” |
The |
Exchange Control Regulations promulgated under the Exchange Control Act [Chapter 22:05], |
|
including and without limitation, the Exchange Control Regulations, Statutory Instrument 109 of |
|||
1996, as amended; |
|||
“Form of Proxy” |
The Form of Proxy accompanying this Circular; |
||
“IAS” |
International Accounting Standards; |
||
“IFRS” |
International Financial Reporting Standards; |
||
“IH Advisory” |
IH Advisory (Private) Limited, a licenced securities investment advisor with the Securities and |
||
Exchange Commission of Zimbabwe, and the financial advisors to the Proposed Transaction; |
|||
“Innscor Africa Limited”, “Innscor”, “the |
Innscor Africa Limited, a Public Company incorporated in Zimbabwe in 1994 under Company |
||
Company”, or “the Group” |
Registration Number 3867/94 and listed on the ZSE; |
||
“Listing by introduction” |
Listing by introduction is a way of listing, on an exchange, shares which would already be in issue on |
||
an existing exchange. No marketing arrangement is required as the shares for which listing is sought |
|||
are already widely held; |
|||
“Legal Advisors” |
Kantor and Immerman, the legal advisors to the Proposed Transaction; |
||
“MBA” |
Master of Business Administration degree; |
||
Innscor Africa Limited Listing Circular
INTERPRETATION AND DEFINITIONS (continued)
“Notice” |
The |
notice of the Extraordinary General Meeting, which was published in terms of the Companies |
Act on Wednesday, 25 January 2023, advising Innscor Shareholders of the Proposed Transaction and |
||
which forms part of this Circular; |
||
“OECD” |
Organisation for Economic Co-operation and Development; |
|
“Proposed Transaction” |
The delisting of Innscor Shares from the Zimbabwe Stock Exchange and the simultaneous admission |
|
of the Company’s shares on the Victoria Falls Stock Exchange; |
||
“RBZ” |
Reserve Bank of Zimbabwe; |
|
“Record Date” |
Friday, 10 February 2023, the date for Shareholders to be recorded in the Register eligible to vote at |
|
the EGM, scheduled at 1600 hours; |
||
“Register” |
The register of Shareholders of the Company maintained by the Transfer Secretaries, and the sub- |
|
register of nominee Shareholders maintained by each Broker; |
||
“Registrar” |
The |
Registrar of Companies appointed in terms of the Companies and Other Business Entities Act; |
“Reporting Accountants” |
Refers to BDO Zimbabwe Chartered Accountants who are the reporting accountants to the |
|
Company; |
||
“Resolutions” |
A proposal submitted to Shareholders for a vote at the Company’s annual meeting or extra-ordinary |
|
meeting of members; |
||
“Shareholder(s)” |
The |
holder(s) of ordinary shares of Innscor; |
“Shares” or “Security” |
The issued and/or authorized share capital of Innscor; |
|
“SI” |
Statutory Instrument; |
|
“Sponsoring Broker” |
IH Securities (Private) Limited, the sponsoring broker for the Proposed Transaction and a member |
|
of the Zimbabwe Stock Exchange; |
||
“Transfer Secretaries” |
Corpserve Registrars (Private) Limited who provide share transfer secretarial services to Innscor; |
|
“USD” or “US$” |
United States Dollars: the legal tender of the United States of America in which certain monetary |
|
amounts in this Circular are expressed; |
||
“VFEX” |
Victoria Falls Stock Exchange, a subsidiary of the Zimbabwe Stock Exchange (“ZSE”); |
|
“VFEX listing requirements” |
The listing requirements of the VFEX; |
|
“Zimbabwe” |
The |
Republic of Zimbabwe; |
“ZSE” |
The |
Zimbabwe Stock Exchange, a stock exchange that is established in terms of the Securities and |
Exchange Act of 2004 (Chapter 24:25) and regulates the conduct of companies whose shares are |
||
listed on the Official List and traded on the Zimbabwe Stock Exchange; |
||
“ZSE listing requirements” |
The Listings Requirements of the ZSE, embodied in SI 134 of 2019; |
|
“ZWL” or “ZW$” |
The |
Zimbabwean Dollar; legal tender in Zimbabwe; |
SALIENT FEATURES OF THE PROPOSED TRANSACTION
Overview of the Proposed Transaction
At the Board meeting held on Friday, 9 December 2022, the Board of Directors of Innscor considered the termination of Innscor’s ZSE Listing and simultaneous listing of the Company’s shares on the VFEX by way of Introduction.
Benefits of the Proposed Transaction
The benefits of the Proposed Transaction include, but are not limited to, the following:
- Revenue retention on incremental exports;
- Enhancement of regional prospects and potential mergers and acquisitions with own equity;
- Raising of additional capital in foreign currency;
- Dividends payments in US$;
- Improved pathway to access US$ banking and treasury facilities;
- Improved options for capital planning; and
- Lower trading costs on the VFEX of 2.12%, versus 4.63% on the ZSE.
In the event that the Proposed Transaction does not take place, then Innscor will remain listed on the ZSE, and the benefits previously outlined above will not be available to the Company or its Shareholders.
Timetable for the Proposed Transaction
Important Dates
Innscor EGM Notice and Circular published |
Wednesday, 25 January 2023 |
||
Record Date, Innscor share register closed (at 1600 hours) |
Friday, 10 February 2023 |
||
Last day of lodging Proxy Forms (at 1600 hours) |
Monday, 13 February 2023 |
||
EGM (at 1000 hours) |
Wednesday, 15 February 2023 |
||
Publication of Results of Innscor EGM |
Thursday, 16 February 2023 |
||
Last day of trading Innscor Shares on the ZSE |
Friday, 17 February 2023 |
||
Termination of Innscor ZSE Listing |
Thursday, 23 February 2023 |
||
Transfer of Innscor share register from the ZSE to the VFEX |
Thursday, 23 February 2023 |
||
Estimated Completion of Innscor’s VFEX Listing |
Friday, 24 February 2023 |
||
The above dates may be subject to change, and any such change will be published to Shareholders. All times indicated above and elsewhere in the Circular are Zimbabwean local times.
Queries
If you have any questions about this Document, please contact your stockbroker, accountant, banker, legal practitioner, or other professional advisors. Alternatively, please contact IH Advisory or IH Securities (whose details are given below):
IH Advisory (Private) Limited |
IH Securities (Private) Limited |
Block 3 |
Block 3 |
Tunsgate Business Park |
Tunsgate Business Park |
30 Tunsgate Road |
30 Tunsgate Road |
Mount Pleasant |
Mount Pleasant |
Harare |
Harare |
Zimbabwe |
Zimbabwe |
Email: advisory@ih-group.com |
Email: trading@ihsecurities.com |
Tel: +263 (0) 242 745119/745139/745937 |
Tel: +263 (0) 242 2796477/86 |
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
Disclaimer
Innscor Africa Limited published this content on 25 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 January 2023 04:56:05 UTC.
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