Caps to delist on Friday

PHARCEUTICAL concern, Caps Holdings Limited will be delisted from the Zimbabwe Stock Exchange on Friday.

The group, which had been facing numerous problems mainly caused by the entrance of indigenous players in the pharmaceutical industry, was making huge losses and decided to delist from the ZSE.

In an interview, a stockbroker told The Zimbabwean that delisting from the ZSE could be a "good idea for the Board members but not necessarily shareholders".

"They are tired of not declaring a dividend, year in and year out," he said.

"But this might not be a good idea for shareholders who have money stashed in the company."

He said, however, this was the Board's "way forward" because Caps was "struggling and had many of its assets stripped from it".

Caps were also beginning to fail to pay major suppliers their owed cash such that they could actually have been black-listed and unceremoniously booted out of the ZSE.

The Caps share price stood at 10c on the ZSE on Tuesday and 14 057 shares exchanged hands on that day awaiting delisting on Friday.

Ironically, the Caps share price stood at 20c on Monday, meaning that the percentage change was 50 percent for the pharmaceuticals concerm, the highest nose-dive on the ZSE on that day.

During its better days, Caps Holdings Limited owned the prestigious St Annes Hospital in Harare which belonged to the Roman Catholic Church.

Many indigenous players have joined Zimbabwe's pharmaceutical industry ever since the poor country decided to dollarise and dump its worthless Zimbabwe Bearer Cheque.

Post published in: Business

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