PRIVATE equity investor, BridgeFort Capital Limited (BridgeFort) will delist from the Zimbabwe Stock Exchange (ZSE) to list on the Victoria Falls Stock Exchange (VFEX), as the great trek to the foreign currency dominated bourse continues.
As of October 24, there were 15 companies listed on the VFEX with BridgeFort set to become the 16th company to abandon the Zimbabwe Gold (ZiG) dominated ZSE trading platform.
“On August 8, 2024, the board of directors of BridgeFort Capital Limited (BridgeFort or the Company) passed a resolution in support of the termination of BridgeFort Capital’s Class A and Class B listings on ZSE, with the intent to list the Company’s Class A and Class B shares on VFEX by way of Introduction,” Bridgefort said in a circular to shareholders on Friday.
The firm said the move would enhance its ability to attract capital inflows into Zimbabwe, broaden investor base and access to US dollar capital, clear financial reporting in US dollar, and lower foreign exchange risk for shareholders.
It will also provide tax incentives for shareholders and potential investors, reduce potential valuation volatility, and lower trading costs.
Bridgefort will also convert 630 000 000 authorised but unissued ordinary shares into 480 000 000 Class A preferredsShares shares in Diaspora Kapita Proprietary Limited, along with the acquisition of various liabilities by the firm in terms of which 83 440 639 new BridgeFort Class A preferred shares will be issued.
“The VFEX listing will be preceded by the issue of 83,440,639 BridgeFort Capital Class A preferred shares to Diaspora Kapita shareholders along with various parties owed sums of money by Diaspora Kapita and its subsidiary or associated companies such that after this allotment the Company shall own 100% of Diaspora Kapita who in turn will own 74,12% of NAFUICO, 100% of Tsigiro Usekelo and other investments,” Bridgefort said.
Bridgefort will also acquire various amounts payable by AgroStrong Health & Finance Services (Private) Limited (AgroSrong) in terms of which 2 486 599 new Class A preferred shares that will be issued as consideration.
A conversion of these amounts to equity will be such that Diaspora Kapita and BridgeFort will own 100% of AgroStrong.
“The issue of 2 486 599 Class A preferred shares to various holders of claims against AgroStrong which will be converted to equity in AgroStrong such that after the conversion to equity, BridgeFort will own 99,94% of AgroStrong and Diaspora Kapita will own the balance,” Bridgefort said.
Prior the VFEX listing, the firm will allot 84 615 385 Class A preferred shares to the placement agent to unlock capital for the Class A portfolio as and when required.
There will also be a split of each of the ordinary shares in issue into 0,15 ordinary shares and 68 698 83 Class A preferred shares for the 100 000 ordinary shares that are currently in issue.
“This will be immediately followed by the subscription by certain of the current Diaspora Kapita key shareholders for 85 000 ordinary shares for the total sum of US$850 and the allotment of 55 555 556 Class B preferred shares to the placement agent to unlock capital to execute the Class B portfolio strategy as and when property acquisition or investment opportunities arise,” Bridgefort said.
In explaining the moves, Bridgefort said access to the Class A portfolio tapped into inbound diaspora remittances and the South African funeral assurance and services industry.
Meanwhile, access to the Class B portfolio is expected to target property investments.
Lastly, it will provide Bridgefort access to a growing fintech, funeral services, funeral assurance, and financial services portfolio.