JSE-listed ICT services company Gijima is in danger of having the listing of its securities suspended and possibly terminated if it does not submit its interim report by the end of the month.
Gijima, which is in the process of a buyout by Guma - controlled by Gijima chair Robert Gumede - failed to report its interim results for the six months to December within the three-month period specified in the JSE's listing requirements.
The JSE says, consequently, the company's listing on the JSE trading system "has been annotated with an 'RE' to indicate the company has failed to submit its interim report timeously and that the listing of the company's securities is under threat of suspension and possible termination".
Should Gijima still fail to submit its interim report by 30 April, its listing will be suspended, says the JSE.
In a statement released to media after the JSE's morning shareholder notice, Gijima says it "will remain committed to high standards of good corporate governance and transparency in financial reporting post the delisting to its stakeholders, including clients".
As soon as Gijima is out of a closed period after the delisting, it will continue to keep stakeholders abreast of its turnaround progress, "and the required salient supporting financial data," it says.
"Guma as the 100% shareholder has committed to continue to provide both operational and financial support to Gijima as we continue with our successful turnaround and growth."
Delisting details
In February Gijima announced it would be leaving the bourse after 15 years as a listed entity, following Guma's offer to buy the 11.6% it did not already own.
Guma's bid is at 220c a share. The move came after Gumede's Guma Group increased its stake in Gijima to 88.3% during the 2014 festive season, on the back of a R100 million rights offer.
The rights offer, fully underwritten by Guma, failed to gain traction among Gijima's other shareholders. In total, shareholders owning 49.9% of Gijima's stock took up the offer, but this includes Guma's combined 46.7% stake.
In a statement to shareholders in February, the parties said because there was such a small free float left listed - and because Gijima's turnaround was ongoing - Guma felt it would be in the best interests of the company to be held 100% by the Guma Entities and to delist.
Gijima says the delisting process will be concluded in the second week of May.
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