The furniture and motor vehicle retailer, Nictus announced this week that it will be unbundling its Namibian operations from its South African business.
The unbundling of the local operations is subject to shareholder and the Namibia Stock Exchange approval.
In a surprise move on Tuesday, Nictus said that its board has resolved to investigate a proposal that will see all shares that Nictus holds in Nictus Namibia being distributed to shareholders at a ratio of 1:1. The unbundled Nictus will be listed on the local bourse as a separate entity while Nictus will retain its secondary listing on the NSX.
No timeline was given for the unbundling.
The company said the unbundling and simulataneous listing of Nictus Namibia on the NSX will enhance the strategic flexibility of the Namibian and South African operations and will enable the two separately listed entities to embark on their own strategies to grow within their respective commercial and regulatory environments.
“The board believes that the unbundling will further enhance shareholder value by giving shareholders improved exposure to the intrinsic value of the two separately listed entities,” Nictus said in a statement.