The Zimbabwe Stock Exchange (ZSE) has suspended CFI Holdings from trading its shares for the next three months demanding the company complies with certain requirements under the listing requirements. In a statement, the ZSE acting chief executive officer Martin Matanda advised the investing public that the suspension of the agro-industrial group was with effect from January 2, 2018.
“The ZSE 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 January 2, 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 Listing Requirements,” he said.
Mr Matanda said in addition to the above, CFI Holdings has also been requested to address governance related matters regarding the appointment of a substantive board chair, chief executive officer and finance director.
CFI has also been requested during the time of suspension of trading of its shares on the ZSE to appoint independent non-executive directors who are not affiliated to or have any association with any of the company’s shareholders.
Mr Matanda said the ZSE sought and was granted permission to suspend trading CFI Holdings’ shares by the Securities and Exchange Commission of Zimbabwe pursuant to the provisions of Section 64 (a) (ii) of the Securities Exchange Act (Chapter 24:25).
“In terms of section 1 paragraph 1.8 of the ZSE Listing Requirements, the company should continue to discharge its obligation to the shareholders and the ZSE during the suspension period,” he said.
The latest suspension of CFI Holdings is the second since 2016. On January 29, 2016, the agro-industrial group was suspended after it failed to publish its financials for the year ended September 30, 2015 despite being granted permission to report them a month after the deadline. Listed companies are supposed to report their earnings within three months of their half-year or year-end trading period.