HARARE – The Zimbabwe Stock Exchange (ZSE) has been asked to stop halting trade in Zeco Holdings Limited stocks after a plea by businessman Philip Chiyangwa to allow the exchange to relist the troubled security.
By Gift Phiri
This comes after Zeco shares were delisted from ZSE for three months from December 1, to allow the stuttering engineering firm to comply with listing obligations.
The Native Investments Africa Group founder told the Daily News yesterday that he had asked the ZSE to seek approval from the Securities and Exchange Commission of Zimbabwe to relist the security as soon as possible.
ZSE chief executive officer Alban Chirume said the suspension was meant to allow the company to comply with the bourse listing requirements.
“The ZSE hereby notifies the investing public of the suspension from trading in shares of Zeco Holdings Limited for a period of three months to allow the company to comply with the following continuing obligations: convening shareholders’ meeting for the years 2014 and 2015; distributing outstanding annual reports for the aforesaid financial years to shareholders and payment of outstanding annual listing fees,” Chirume said.
“In terms of Section 1,8 of the ZSE Listings Requirements, the company should continue to discharge its obligation to the shareholders and the ZSE after the suspension,” he added.
The engineering firm, which has been losing market share to competitors, announced plans were afoot to relist.
“We are attending to their requirements, their money has been paid and the AGM is being planned,” the flamboyant businessman said.
The move could eliminate the trading halt that had bumped the depressed stock — seen by some companies as a demotion they would rather avoid.
It is the second time Zeco has been delisted from the stock exchange after the 1998 delisting, again after facing financial problems.
Zeco Holdings — a result of a merger between Zimbabwe Engineering Company (Zeco) Ltd and Critall Hope — was listed as the worst governed company on the ZSE in 2014 by the Institute of Chartered Secretaries and Administrators of Zimbabwe (ICSAZ).
Zeco Holdings, through its subsidiaries, builds rail wagons and locomotives for utilities in Zambia, Tanzania, Mozambique, Ethiopia, and Kenya.
The stressed firm also manufactures roller shutters, lift-up garage doors, steel windows, door frames, burglar bars, and filing cabinets, as well as agricultural implements. – Daily News