The Zimbabwe Stock Exchange (ZSE) has officially delisted Khayah Cement Ltd, amid the company’s efforts at a corporate restructuring.
Khayah Cement’s shareholders passed a voluntary resolution on 19 May, paving the way for the company’s removal, which was effected three days later. It is currently under corporate rescue proceedings and local media have reported the company owes nearly US$70m to over 120 creditors.
Its parent company, Fossil Mines, is said to have inherited US$11m legacy debts when it acquired the company (previously Lafarge Zimbabwe) from Holcim for US$29.7m in 2022.
In January this year, following repeated breakdowns and the mothballing of its kiln at the Harare plant, production resumed after a US$15m refurbishment. Ongoing trade sanctions against the Zimbabwe are said to have restricted Khayah Cement’s access to imported clinker while operating as a grinding-only facility, among other challenges.
In February, administrators Grant Thornton were appointed as a corporate rescue practitioner. A subsequent creditors meeting gave approval for new investment.
