National Tyre Services Limited (NTS) is set to withdraw from the Zimbabwe Stock Exchange (ZSE), citing challenges in its operations, ongoing liquidity problems in the trading of its shares, and considerable expenses associated with maintaining its listing. Upon termination of the listing, NTS will revert to being an unlisted private company with shares not trading on the stock exchange.
The company has encountered significant challenges in the competitive tyre sales industry due to liquidity constraints and competition from low-cost products. Listing-related costs for the financial year ended 31 March 2025 at US$96.1K have increased to levels that do not match the attendant benefits, says the company.
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The company has not paid out a dividend for a number of years, choosing instead to strengthen its working capital. Limited access to cheap local loans has hampered the company’s ability to expand its portfolio and distribution network in the country. NTS was first listed on the bourse in 1960.
Minority shareholders who are hesitant to keep investing in the unlisted company have been given the option to sell their shares by Radun Investments, one of NTS’s largest shareholders.
In the wake of the listing termination, NTS has committed to transparency in its operations, upholding corporate governance principles, and observing the laws of the country.
Radun has proposed acquiring a 37.23% stake, consisting of 94,513,956 shares, from minority shareholders at a cash price of $0.0248 per share. Radun has secured funding to the tune of US$2,500,000 to cover all minority shareholders in the event they all opt out.
The company has urged its shareholders to vote in favor of the termination, as it is the only practical way for the company to navigate and overcome its current challenges.
Following termination, a roadmap has been developed. The company will recapitalize the business and restructure, and expand into retreading, logistics partnerships, or regional supply chains. Decision-making will be streamlined at the shareholder and director level.
NTS Listing termination timelines.
