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The Zimbabwe Stock Exchange (ZSE) has further extended CFI Holdings Limited’s suspension from the bourse by another 30 days pending further investigations into irregularities in the agro-industrial group.
CFI was initially suspended on January 2, 2018 and was further prolonged to May 2, 2018.
This therefore becomes the second time that the local bourse has extended the suspension by a further 30 days to June 02.
“The suspension period has been prolonged by a further 30 days to June 2, 2018.
“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 Listings (Committee) resolved to further extend the suspension to June 2, 2018 for the purpose referred to in the immediately preceding paragraph,” said ZSE acting chief executive Martin Matanda in a statement.
The 30-day extension on trading of the agro-industrial concern’s shares comes after the ZSE’s listings committee was granted the green light by capital markets regulator, Securities and Exchange Commission of Zimbabwe (SECZ) in line with provisions of the Securities and Exchange Act.
In January this year, CFI’s shares were barred from trading on the bourse for three months over corporate governance deficiencies and to allow the company to comply with listing requirements.
During the prolonged suspension period, CFI is still required to comply with the ZSE listing requirements in line with laws governing capital markets.
“The company should continue to discharge its obligation to the shareholders and the Zimbabwe Stock Exchange during the suspension,” said Mr Matanda.
CFI was last year embroiled in some shareholder disputes involving its two major 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. One of the sticky points in the firm was the sale of Langford Estates to Fidelity in a land for debt swap deal, with allegations that it was done fraudulently and therefore had to be reversed.
CFI was once suspended from the ZSE two years ago for failing to publish its financial results for the year ended September 30, 2015 which was later lifted in May the same year after the firm had complied with the requirement.