By Adelaide Moyo
The Zimbabwe Stock Exchange (ZSE) has indefinitely prolonged the suspension of agro-industrial group, CFI Holdings’ shares from trading on the local bourse. CFI was suspended from trading in January, 2018, after the company failed to comply with listing requirements.
Martin Matanda, the ZSE acting chief executive, yesterday told investors that CFI’s suspension will be lifted after the company puts its house in order.
“The investing public is hereby advised that the suspension period has been prolonged indefinitely and will be lifted after all identified breaches have been regularised,” he said.
He said ZSE had been granted the permission to further suspend CFI shares by the Securities and Exchange Commission of Zimbabwe (Seczim).
“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,” Matanda 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.”
According to the listing rules, a company is obligated to ensure that 30 percent of each class of equity shares is held by the public, unless the Listing Committee agrees otherwise.
Last year, CFI has been subject of a bitter fight between major shareholders, Stalap Investments and Messina Investments which control 41 percent and 42 percent respectively.
Stalap is an investment vehicle for shares held in CFI by the National Social Security Authority and Zimre Holdings.
The local bourse requested the company to address corporate governance related matters which include the appointment of a substantive board chairperson, chief executive officer and finance director, as per Section 4, paragraph 4,25 of the ZSE listing requirements.
CFI is also required to expedite the appointment of independent non-executive directors who are not affiliated or have any association with any of the company’s shareholders.
CFI was previously suspended from trading in the local bourse in January 2016 after failing to publish the audited financial results for the year ended September 30, 2015, which was lifted in May of the same year after it compiled.
Last year, three directors Hamish Rudland, Douglas Mamvura and Ephraim Chawoneka resigned from the CFI board, marking the end of Stalap representation on the CFI board.
In November, 2017, Grace Muradzikwa stepped down from the board as acting chairperson while acting chief executive Timothy Nyika quit on December 1, 2017. — The Financial Gazette