African Energy to delist from BSE
Isaac Pinielo | Tuesday November 28, 2017 16:12
In a public announcement yesterday, the company, which has a dual listing on the Botswana Stock Exchange (BSE) and the Australian Securities Exchange (ASX), stated that its two million shares currently held on the Botswana register will be transferred to the ASX register.
The power project developer, which owns 100% of the Sese Coal and Power Project in northern Botswana, also stated that it will undertake an on‐market share buy‐back of up to four percent of its total share capital over the next 12 months.
A market analyst at Motswedi Securities, Moemedi Mosele told Mmegi Business in an interview that the delisting may be due to the lack of activity on the foreign board.
“Due to the small number of the company’s shares that are held on the local share register, it may be justifiable for the company to cease listing on the local bourse,” he said.
Company secretary, Daniel Davis said in an announcement via the BSE website that the initiative is undertaken, taking note of the low market capitalisation when compared to the net tangible asset backing of the company and, in particular, the current cash backing of A$4.3 million.
He said shareholders have approved the voluntary delisting of the power project developer’s shares from BSE.
“The buyback may be utilised to support the market during this period,” he said.
According to Davis, the prices paid for any shares purchased under the share buy‐back will be no more than five percent above the volume weighted average price of African Energy shares over the five prior trading days.
He also indicated that the total number of shares to be purchased by African Energy under the buy‐back will depend on market conditions and volumes.
However, he said the board has resolved to limit purchases to 25 million shares at a maximum share price of seven cents and incur no more than A$500,000 for on‐market share purchases.