The Johannesburg Stock Exchange (JSE) has suspended trading in Labat Africa‘s shares after the company failed to pay…
The Johannesburg Stock Exchange (JSE) has suspended trading in Labat Africa‘s shares after the company failed to pay a R22.7 million ($1.43 million) dividend it had declared. The suspension took effect immediately when Labat did not transfer the full amount to Strate, South Africa’s central securities depository, by the agreed settlement date.
Initially, Labat scheduled the dividend payment for August 3. However, just days before, on July 30, the company announced a postponement, stating it would align the payment with the release of its audited financial statements for the year ending May 31, 2026. Unfortunately, the company did not provide a new payment date.
Although Labat suggested alternative arrangements for paying the dividend, the JSE decided to proceed with the suspension, citing the interest of shareholders as the reason for their action.
On June 23, Labat announced a dividend of 1 South African cent per share, marking a significant milestone as it was the company’s first dividend in its 27 years of being listed on the JSE. With around 2.268 billion shares outstanding, the total gross distribution was approximately R22.7 million before the deduction of the 20% dividend withholding tax.
The company emphasised the importance of this payout, stating that it demonstrated progress in its operations and a commitment to creating shareholder value.
According to the original timeline, the final day to trade with dividend rights was set for July 28, with July 31 designated as the record date and August 3 as the payment date. Although the ICT firm confirmed that shareholders registered by the July 31 record date would still receive the dividend, a new payment date has not been established.
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Additionally, the company has yet to release its audited financial statements, which were expected to accompany any revised dividend details.
Labat positions itself as an investment holding company focused on technology and ICT businesses. Its portfolio features Classic International, a software and technology distribution firm, and a 51% stake in Ahnamu Investments, which distributes enterprise hardware across South Africa and the Southern African market.
In July, Labat acquired an additional 24.45% stake in Classic International from its largest shareholder, Muziwakhe Ndhlovu.
The company has significantly changed its strategy in recent years. After venturing into cannabis cultivation, retail, and healthcare in 2019, Labat exited those businesses, selling its cannabis and healthcare operations to All Trading for R23 million in November 2025.
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This latest trading suspension is Labat’s second in about two years. The last suspension was lifted when it acquired Classic International.
The Johannesburg Stock Exchange (JSE) has asked Labat to provide more information regarding the issues that led to its suspension. In the meantime, shareholders hoping for Labat’s first dividend are left in the dark about both the payment and a timeline.
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