HARARE – Property development and investment firm First Mutual Properties (FMP) is set to delist from the Zimbabwe Stock Exchange after proposing a voluntary termination of its listing in a move the company says will provide greater operational flexibility and unlock new investment structures.
The proposed delisting will be accompanied by an offer to minority shareholders by FMP’s majority shareholder, FMHL, underwritten by Morgan & Co, to acquire up to 360,944,355 ordinary shares, representing 29.20 percent of the company’s issued share capital.
Under the transaction, minority shareholders are being offered US$0.033 per share as an exit option ahead of the company’s transition into a privately held entity.
In a circular outlining the proposed transaction, the company said shareholders who choose not to accept the offer would remain invested in an unlisted company, which could negatively affect the marketability and future value realisation of their shares.
“FMP has proposed a voluntary termination of listing from the Zimbabwe Stock Exchange,” the company said in the statement.
The company added that the move was being driven by structural limitations associated with remaining listed on the local bourse, including low liquidity and fundraising constraints, while management also seeks greater flexibility in pursuing joint ventures and strategic partnerships.
Market analysts say the delisting marks another significant shift in Zimbabwe’s property and capital markets landscape, particularly given FMP’s sizeable property portfolio, which includes prime real estate assets and strategic land holdings such as the Arundel Park land bank in Harare.
The announcement is also likely to fuel speculation over the future of some of FMP’s premium property assets, with investors closely watching whether the company could eventually restructure parts of its portfolio into a Real Estate Investment Trust (REIT). However, the company has not provided certainty on whether it intends to relist in future or proceed with placing strategic assets into a REIT structure.
“The Offer provides Minority Shareholders with an opportunity to exit their investment ahead of the termination of listing,” the statement said.
FMP indicated that upon completion of the transaction, the company would proceed with terminating its listing and operate as a private entity, a move expected to give management more room to restructure assets, negotiate private capital arrangements and pursue long-term development projects outside the regulatory obligations of the public market.
The proposed transaction comes at a time when several Zimbabwean firms are reassessing their position on the local bourse amid concerns over liquidity challenges, valuation distortions and limited access to long-term capital.
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