‘ZSE suspension doesn’t disrupt Old Mutual’
OLD Mutual Zimbabwe operations are not disrupted in any way as a result of the Old Mutual Implied Rate (OMIR) issue which saw trading of Old Mutual Limited’s shares being suspended from trading on the Zimbabwe Stock Exchange (ZSE).
Instead, the group has been focused on sustained efforts to continue to deploy its strategic initiatives and the business plans set out for 2020.
Addressing Old Mutual’s annual general meeting on Wednesday this week, Old Mutual Zimbabwe chief executive Samuel Matsekete said the Group will emerge from the coronavirus pandemic stronger.
“We’re happy to report that in respect even of the Covid-19, we’ve picked lessons that we’re also bringing into the actions that we’ve adapted to that environment and ensure that we emerge out of these conditions as a stronger business,” he said.
For example, he said the group has strengthened its digital offering and e-channels so that customers are not inconvenienced as a result of the Covid-19 induced lockdowns or other requirements arising from the pandemic.
“On our digital platforms, we’re happy to report that we’ve been able to extend service; we’ve been able to distribute products to our customers in a manner that has also been met favourably from the market,” said Matsekete.
Commenting on the suspension from trading on the ZSE Matsekete said the group was still in discussion with authorities on the way forward.
He pleaded innocence on the allegations which he said the group had already been exonerated by the authorities.
“The engagements we’ve had have clarified that the key concern requiring attention related to the OMIR emanating from the Old Mutual Limited share being listed on the ZSE alongside stock exchanges in other foreign markets and the fungibility of the Old Mutual share which results in players being able to compute an exchange rate by comparing prices here on the ZSE against prices obtained on the same share at the other exchanges,” he said.
Matsekete stated that a press statement released recently by Finance and Economic Development Minister Mthuli Ncube and the ZSE confirmed that Old Mutual Zimbabwe was not involved in any malpractice relating to the foreign currency parallel market and was in full compliance with listing rules of the ZSE.