Barloworld’s shares on Monday ceased trading on the Namibian Stock Exchange (NSX) after its shareholders decided to maintain a sole primary listing on the Johannesburg Stock Exchange (JSE).
The development means that institutional investors and individuals will no longer trade the industrial processing, distribution and services company’s shares in Namibia, but can only do so in South Africa.
“The Board would like to convey that the decision was not taken lightly and acknowledges the long and fruitful relationship the Company has enjoyed with the NSX. Following a cost benefit review of the Secondary Listing, the Board concluded that the benefits do not outweigh the costs. Consequently, the Board has approved the proposal to de-list Barloworld securities from the NSX,” the company said earlier when it announced its de-listing decision.
Barloworld, whose two primary areas of focus are industrial equipment and services and consumer industries (food and ingredient solutions), is expected to continue operating in Namibia despite its delisting.
“Local shareholders (mainly asset managers such as pension funds etc.) had a choice to either sell their shares or if they want to remain shareholders, transfer their holdings to the JSE – the company is only delisting from the NSX, not the JSE. The stock just loses its dual-listed status,” said Danie van Wyk from IJG Securities.
“For the NSX it just means that there is one less company to invest in.”
Barloworld’s Industrial Equipment and related services portfolio offers earthmoving equipment, industrial services and power systems, which enable the operation and maintenance of a large array of mining, construction and power solutions for customers.
The Consumer Industries business, Ingrain, provides large enterprises with the ingredients essential to the manufacturing of a range of products including food and beverages, paper, pharmaceuticals, building materials and adhesives, amongst others.
