Published: 3 hours ago

National Tyre Services (NTS) Limited has announced plans to delist from the Zimbabwe Stock Exchange (ZSE), citing diminishing returns from its public listing, worsening economic conditions, and mounting competition from cheaper imported tyres.

In a circular to shareholders released this week, the tyre manufacturer and retailer said a detailed review of its listing status concluded that remaining on the ZSE no longer provides meaningful benefits. The company, which has been listed since 1969, is now seeking shareholder approval to proceed with the delisting.

"The operating environment has been characterised by persistent macroeconomic instability over the past decades," the company said. "The business has been adversely affected by severe exchange rate volatility, liquidity constraints, and shortages of foreign currency, all of which have materially hindered the importation of tyres and raw materials."

NTS noted that the Zimbabwean tyre industry has become increasingly competitive, with a surge in imported brands taking up market share. The influx of cheaper imports, coupled with limited access to long-term and affordable capital, has constrained the company's ability to expand or maintain adequate working capital levels.

The firm added that efforts to raise funding through local banks have been largely unsuccessful due to prohibitively high borrowing costs, while operational challenges - including frequent power outages - have disrupted production. Capacity utilisation at its tyre retreading plant currently stands at about 30 percent.

As part of the delisting process, NTS's major shareholder, Radun Investments (Private) Limited, has proposed a mandatory offer to buy out minority shareholders at US$0.0248 per share.

"This provides a clear and structured opportunity for minority shareholders to exit their investment at a price deemed fair and reasonable by Independent Financial Advisors," said the company.

According to ZSE data, the total indicative share trading liquidity for NTS in the past 12 months to October 1, 2025, stood at US$1.06 million (ZWG28.41 million), averaging about US$88,170 (ZWG2.37 million) per month - figures the company described as too low to justify continued listing expenses.

If approved, NTS will join a growing list of companies choosing to delist from the ZSE amid declining market activity and limited investor confidence. The firm said its focus going forward will be on restructuring operations, cutting costs, and exploring new ways to compete in a challenging business environment.
- onlkine

You might also want to read this

• NTS after tax profit doubles
• National Tyre Services hunts for MD
• NTS mixed sourcing pays off
• NTS recovers, back in black
• NTS.zw | Unaudited Financial Results HY18
• NTS.zw | Unaudited Financial Results HY18
• NTS to get more products from China
• NTS.zw | Notice of Annual General Meeting
• NTS.zw | Audited Financial Results FY ended 31 March 2017
• NTS profits narrow due to forex challenges