The company's shares have no value as it entered business rescue in September 2019.
Former construction giant Group Five has announced its plans to delist from the Johannesburg Stock Exchange (JSE) on 12 June after 46 years.
The company’s shares have been suspended since March 2019 and went into business rescue in September 2019 following years of struggling due to the weak economy and declining infrastructure investment in the country.
On Monday, 11 May, Group Five’s business rescue practitioners said in a statement that, upon the implementation of the business rescue plans, they did not believe there is any realistic prospect of there being any residual value available for or attributable to shareholders. Because of this, the issued shares of the company have no value.
The group also didn’t comply with the JSE listing requirements anymore, as it has no board, board committees, prescribed capital or recent audited financial statements.
Other companies like Edcon and Comair have also recently filed for business rescue due to the weak economy which has been worsened by Covid-19 and lockdown.
Read more: South African companies looking at business rescue and job cuts
The impact of Covid-19 and lockdown on the Group Five business has resulted in the delay of its business rescue proceedings.
