The Zimbabwe Stock Exchange (ZSE) has suspended agro-industrial group, CFI Holdings from trading for three months to allow the company to comply with listing requirements, the bourse said today.
CFI is subject of a bitter fight between major shareholders, Stalap Investments and Messina Investments which control 41 percent and 42 percent respectively.
The Nicholas van Hoogstraten controlled Messina Investments, with support of other minority shareholders, booted out all Stalap Investments aligned directors from the board in a series of extraordinary general meetings last month.
“ZSE sought and was granted permission to suspend trading in CFI holdings Limited Shares by the Securities and Exchange Commission of Zimbabwe pursuant to the provisions of section 64(a) of the securities and exchange act,” ZSE said in a statement.
The company is required to comply with the free float requirements as per section 4 paragraph 4.25 of the ZSE listing requirements.
According to the listing rules, a company is obligated to ensure that 30 percent of each class of equity shares is be held by the public, unless the Listing Committee agrees otherwise.
Additionally, the company has been asked to address corporate governance related matters which include the appointment of a substantive board chairman, chief executive officer and finance director.
It 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.
Shingirai Chibanguza and Itai Valerie Pasi were appointed in December last year as acting chief executive and acting chairperson respectively to replace Timothy Nyika and Grace Muradzikwa who resigned from the board in November last year.
The suspension is with effect from January 2, this year.
CFI was previously suspended in January 2016 for 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. – The Source