The Johannesburg Stock Exchange has suspended trading in Labat Africa shares with immediate effect after the technology investment holding company failed to pay its first dividend in 27 years as a listed company.

In a notice published Thursday, the JSE said Labat failed to pay the declared dividend according to the timetable issued to shareholders. The company also did not make alternative arrangements to transfer the full amount due to Strate, South Africa’s central securities depository, as required by the exchange.

The JSE said it had considered information provided by Labat on proposed alternative settlement arrangements but that uncertainty remained over the payment of the dividend. Labat objected to the suspension, but the exchange proceeded, saying the action was taken in the interest of shareholders.

Labat delays dividend as audit nears completion

Labat declared the maiden dividend on June 23 at 1 cent a share. Based on 2.268 billion shares in issue, the gross dividend amounts to about R22.7 million ($1.4 million). After the 20% dividend withholding tax, shareholders are due about R18.1 million ($1.1 million).

At the time, Labat described the dividend as a landmark achievement and said it reflected improved operations and value creation. Its directors also confirmed that the company would meet the required liquidity and solvency tests immediately after making the payment, as required under Section 46 of the Companies Act.

The original timetable set July 28 as the last day to trade cum dividend, July 31 as the record date and Aug. 3 as the payment date.

Four days before payment was due, Labat announced that it was extending the timetable. The board said it wanted to align the dividend with publication of the company’s audited annual financial statements after discussions with management and external auditors during the audit process.

The company cited three reasons: giving shareholders access to the latest audited financial information, ensuring an orderly dividend process and strengthening corporate governance, transparency and shareholder protection.

A second announcement clarified that only the payment date was being changed and that shareholders on the register at the close of business July 31 would remain entitled to the dividend. No new payment date was announced.

Labat builds around technology and ICT assets

The audited annual financial statements for the year ended May 31, 2026, which Labat said would be linked to the dividend process, have also yet to be published.

Founded in 1995, Labat is an investment holding company focused on technology and information and communications technology businesses. Its operating assets include Classic International, a software and technology distribution business, and a 51% stake in Ahnamu Investments, an importer and distributor of enterprise hardware in South Africa and the wider Southern African region.

The company increased its stake in Classic by 24.45% in July after completing an agreement first announced in May. Muziwakhe Ndhlovu, Labat’s largest shareholder with a 28.41% stake, was the seller.

Labat listed on the JSE in 1999 after being founded four years earlier by Brian van Rooyen and Victor Labat. It later expanded into cannabis and health care before selling those businesses to All Trading for 23 million rand ($1.4 million) in November 2025.

For the year ended May 2025, Labat reported a profit of R131.49 million ($8.1 million), compared with a loss of R26.4 million ($1.6 million) a year earlier. Revenue rose to R199.4 million ($12.3 million) from R48.5 million ($3 million).

The latest suspension is the second in about two years. The previous suspension was lifted as a condition linked to the Classic acquisition.

The JSE has instructed Labat to publish a further announcement addressing the issues raised in the exchange’s notice.