WestProp Holdings Limited has issued a cautionary announcement advising shareholders and investors to exercise caution while the company considers a restructuring process aimed at improving financial performance and shareholder value.
In a statement released to the market, the company said its board is evaluating a restructuring plan that would move non-performing assets out of the listed entity into privately operated companies.
“In discharge of its duty to enhance and preserve shareholder value, the Board is considering a restructure of the Company where non-performing assets will be moved from the listed entity to operate as private companies,” the company said.
WestProp indicated that the proposed restructuring is expected to strengthen key financial indicators and support a more appropriate valuation of the business on the Victoria Falls Stock Exchange.
“The restructuring is expected to enhance the Group’s financial performance metrics, including achieving a healthier price-earnings ratio and a more appropriate market valuation on the VFEX,” the statement read.
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The company warned that the outcome of the ongoing process could materially affect the price of its securities, prompting the issuance of the cautionary notice.
“The outcome of this restructuring process may have material effect on the price of the company’s securities,” WestProp said.
Shareholders and the investing public were advised to remain cautious when trading in the company’s shares until further information is released.
“Accordingly, shareholders and the investing public are advised to exercise caution when dealing in the Company’s securities until a further announcement is made,” the company added.
Company secretary K.L. Stubbs, writing by order of the board, said shareholders would be updated once additional information becomes available.
“The board will update the shareholders as soon as further information is available.”
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