ZSE extends CFI suspension
THE Zimbabwe Stock Exchange (ZSE) has indefinitely extended the suspension of CFI Holdings from trading its shares on the local bourse.
CFI Holdings, a conglomerate predominantly involved in agro-industrial processing and retailing was initially suspended from trading its shares on the bourse on January 2 this year for three months for failing to comply with certain listing regulations.
When the three-month suspension period lapsed, the ZSE extended the group’s deferment of trading on the local bourse by 30 days to May 2 and again by another 30 days to June 2 to allow continued investigations into the firm’s irregularities.
In a public notice last week, the ZSE acting chief executive officer Mr Martin Matanda said the suspension would be lifted after CFI Holdings regularises the identified breaches.
“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.
CFI Holdings was being requested to address governance related matters regarding the appointment of a substantive board chair, chief executive officer and finance director.
The agro-industrial group was also requested during the time of suspension of trading of its shares to appoint independent non-executive directors who were not affiliated to or have any association with any of the company’s shareholders.
“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 [Cap24:25],” said Mr Matanda.
During the latest suspension period, CFI is still required to comply with the ZSE-listing requirements in line with laws governing capital markets.
In May, CFI Holdings challenged its suspension, citing that its board was in compliance with the provisions of its articles of association.
The group also argued that the board was in full compliance with the articles of association in so far as the number of directors was concerned.
It challenged ZSE to provide evidence proving that it has violated listing requirements.
In 2017, CFI Holdings was a subject of bitter wrangles between its major shareholders, Stalap Investments and Messina Investments, which control 41 percent and 42 percent respectively.
Messina Investments, which is controlled by businessman Mr Nicholas van Hoogstraten, championed the removal of directors linked to Stalap Investments in a number of extraordinary general meetings held in December 2017. -@ ShamisoDzingire