The Zimbabwe Stock Exchange (ZSE) has suspended CFI Holdings from trading its shares on the platform for a period of three months pending compliance with regulatory obligations.
By Melody Chikono
This comes as the company has been currently engulfed in wrangles which range from fraud to mismanagement that have to date seen British tycoon Nicholas Van Hoogstraten seizing control of CFI with 52% shareholding.
Hamish Rudland, a non-executive director in CFI Holdings and representing Stalap Holdings, a shareholder with over 40% interest, resigned last month ahead of an extraordinary general meeting which sought his removal, effectively giving one shareholder full control of the CFI board. Shingirayi Chibanguza, who is now acting CE, survived the ouster after he got 52% of the shareholders’ votes against his removal from the board.
In a statement, ZSE acting chief executive Martin Matanda said in terms of the obligations CFI is expected, within the three months, to comply with free float requirements as per Section 4 paragraph 4, 25 (d) of the listing requirements.
The paragraph states that 30% of each class of equity shares shall be held by the public, unless otherwise agreed with the committee.
And where the issuer has had a private placement prior to the initial public offering, at least 20% of the total issued shares must be offered to the public, which generally consists of individuals and institutional investors holding less than 5% of the shares in issue.
“The Zimbabwe Stock Exchange hereby notifies the investing public of the suspension from trading in shares of CFI Holdings Limited for a period of three months with effect from 2 January 2018 to allow the company to comply with the following continuing obligation: compliance with free float requirements as per Section 4 paragraph 4,25 (d) of the governance-related matters, appointment of a substantive board chairman, chief executive officer and finance officer and director, appointment of independent non-executive directors who are not affiliated or have any association with any of the company’s shareholders,” the ZSE said.
In terms of the ZSE listing requirements, the company should continue to discharge its obligation to the shareholders and the ZSE during the suspension.