HARARE – The Zimbabwe Stock Exchange (ZSE) has extended the suspension of CFI Holdings’ shares from trading on the local bourse by additional 30 days to June 2, 2018.
The move, aimed at giving the agro-business group more time to comply with certain requirements of the listing rules, has ruined hopes of shareholders looking to unlock funds held in the counter, which has remained suspended since January 02 this year following its failure to address certain requirements under the listing rules.
These include corporate governance concerns regarding the appointment of substantive board chair, chief executive officer and finance director and the issue of free float requirements as per Section 4, paragraph 4.25 of the ZSE listing requirements.
According to the listing rules, a company is compelled to ensure that 30 percent of shares are held by the public.
ZSE’ s acting chief executive Martin Matanda yesterday confirmed the latest development in a statement to the investing public .
“The investing public is hereby advised that the suspension period (of CFI Holdings) has been prolonged by a further 30 days to June 2, 2018,” Matanda said.
“The extension is to allow the ZSE to continue engaging CFI on certain matters which occurred during the intervening period following the initial suspension on January 2, 2018.
“Accordingly, the Listing Committee resolved to further extend the suspension to June 2, 2018 for the purpose referred to in the immediately preceding paragraph,” Matanda added.
Matanda said ZSE had been granted the permission to suspend trading CFI’s shares by the Securities and Exchange Commission of Zimbabwe (Secz).
“ZSE sought and was granted permission to further suspend trading in CFI Holdings Limited’s shares by the Securities and Exchange Commission of Zimbabwe pursuant to the provisions of Section 64 (1) (a) (ii) of the Securities and Exchange Act (Chap 24:25),” he said.
“In terms of Section 1 paragraph 1.8 of the ZSE Listing Requirements, the company should continue to discharge its obligation to the shareholders and the ZSE during the suspension.”
CFI was last year a subject of bitter wrangles between its key shareholders Stalap Investments and Messina Investments which control 41 percent and 42 percent respectively.
Messina Investment, which is controlled by business man Nicholas van Hoogstraten, orchestrated the removal of directors linked to Stalap Investment in a series of extraordinary general meetings (EGMs) in December last year.
— The Financial Gazette