Delisting and take-private trend is a sign of progress rather than crisis for South Africa

JOHANNESBURG, Capital Markets in Africa – This exclusive opinion piece by Nanga Kwinana, Partner at Bowmans, offers a perspective on the current debate about JSE delistings in South Africa. Nanga argues that South Africa is experiencing the same structural shifts seen in global markets – and that delistings and take‑privates are signs of a maturing capital‑markets ecosystem.

There has been a mixed response to the trends of declining company listings and increasing delistings on the Johannesburg Stock Exchange (JSE).

Some commentators have expressed apprehension about the seemingly high rate of delistings, fearing that this might signal a loss of confidence in the economy. Others have been upbeat, noting that new and prospective listings, particularly in the technology sector, point to pockets of energy and renewal. In October 2025, it was announced that Optasia had listed on the Main Board of the JSE. Blu Label Unlimited also announced its intention to list Cell C Holdings on the JSE’s Main Board.

As always, context is key. What happens to stock markets in South Africa and the rest of Africa cannot be divorced from global industry trends – although there is sometimes a lag.

Delisting for long-term growth
An ongoing global trend among very large corporates is consolidation and focus as they seek to strengthen their positions in shifting markets. Anglo American, which has had a secondary listing on the JSE since 1999, is a good example of this, having made a strategic shift from gold and platinum towards copper, crop nutrients and premium iron ore assets.

This was the context for the Anglo demerger that led to the establishment of Valterra Platinum (whom Bowmans represented). Not long afterwards, Anglo and Canadian mining company Teck Resources (whom Bowmans also represented) announced their plans to merge and form Anglo Teck, with more than 70% exposure to copper and the rest mainly to iron ore.

Notably – and reassuringly for those worried about investor faith in the JSE – Anglo retains its majority share in JSE-listed iron ore company Kumba Iron Ore.

Several other high-profile transactions also helped shape the 2025 delistings landscape. Adcock Ingram was taken private in a ZAR 4 billion acquisition by Natco Pharma (advised by Bowmans), and MultiChoice delisted after a ZAR 56 billion takeover by French media giant Canal+ (again represented by Bowmans). Metrofile & Barloworld are also expected to depart the JSE in 2026 following buyouts initiated in 2025.

The increasing popularity of take-private transactions reflects a recalibration in terms of how companies access and allocate capital, manage regulatory challenges and position themselves for sustained growth. Delistings allow businesses to respond to global pressures, rapid advances in digitisation and changing investor preferences.

Some companies have market capitalisations that value them at a significant discount to their net asset value, and existing majority investors may feel that there is more value to be found by taking the company private. In many cases, delistings represent value creation – companies are acquired at a premium and then repositioned for long-term growth. Examples include the buyout of Royal Bafokeng Platinum, where a bidding war resulted in a large premium for shareholders, and Mediclinic, which was acquired at a 50% premium. In these cases, delistings corrected what may have been undervaluation.

The trend of multinational enterprises acquiring South African companies is also a good indication of the strategic value international capital is placing in local businesses.

Regulatory reform
Delistings can also signal where reforms are needed. Many small- to mid-cap listings on the JSE struggle with the additional regulation, administrative burden and significant costs of being listed, while lacking sufficient liquidity and shareholder spread to justify these drawbacks. The JSE has been addressing this issue via an ongoing simplification of its listing requirements.

The exchange released the final version of its simplified JSE Listings Requirements in December 2025, with the Requirements becoming effective on 13 January 2026 for new listings and 16 February 2026 for all other purposes. Overall, the revised Requirements reflect the modernisation of the JSE’s regulatory framework, with the amendments clarifying the applicable legal position, streamlining processes and strengthening alignment with global market practice.

The JSE is also evolving structurally, splitting its Main Board into two segments, being the prime and general segments, to cater for the different needs of large corporations and smaller peers. The result is the emergence of the Main Board Prime and the Main Board General, in addition to the already existing AltX.

These reforms are expected to reduce regulatory burdens, assist in rebuilding momentum in the listings pipeline and increase investor confidence through the implementation of clearer guidelines around disclosure. Having come into effect just over a year ago, the general segment is faring well, attracting and retaining notable listings, contributing to the exchange’s overall resilient performance and fostering an enabling environment for growth and the attractiveness of the South African capital markets.

Final note
The recent wave of delistings and take-private transactions is evidence of market agility. Companies are positioning themselves for better long-term performance, and foreign investors are showing confidence in South African assets. The JSE is modernising to meet the needs of a changing economy and attract a new generation of issuers. Ultimately, it is not the number of listings but the adaptability and resilience of the capital markets that is the real measure of their health.