SEEDCO International is awaiting further details from the Zimbabwe Stock Exchange and other regulatory authorities with regards its suspension from trading on the local stock market, chief executive officer, Mr Morgan Nzwere, has said.
Seedco International, Old Mutual and PPC Limited, which are all dual listed, are set to remain suspended from trading when the ZSE resumes trading next week Monday.
“We are not too sure of the modalities although we understand the recommendation is for us to move to the VFSE, which is being formed,” Mr Nzwere said in a text message to our Harare Bureau.
Seedco International is also listed on the Botswana Stock Exchange and has operations across the continent from South Africa up to Kenya and beyond.
Meanwhile, another suspended entity Old Mutual, says it is working with the Zimbabwe authorities to explore ways to handle its listing on the Zimbabwe Stock Exchange so that the OMIR “does not continue to create the concerns raised in the recent past.”
Old Mutual along with the entire Zimbabwe Stock Exchange was suspended from trading on the 23rd of June 2020 with authorities saying its shares were being used to undermine prices and the exchange rate.
Investigations on the matter have since been concluded with the ZSE getting a green light from the Ministry of Finance to resume trading from Monday the 3rd of August 2020.
However, Old Mutual will remain suspended after authorities said there was reasonable ground for dual listed counters, including another Johannesburg Stock Exchange listed entity PPC Limited to remain suspended.
“Whilst there was no observed evidence of the direct involvement of the listed entities themselves, significant evidence of a strong link between the price behaviours and transaction patterns on the internationally listed shares, namely Old Mutual, Seedco International and PPC Limited, and the behaviour of the parallel market exchange rate was also established, with varying degrees of causality,” reads part of the statement signed by the Finance Minister Prof Mthuli Ncube.
The statement also suggests that the OMIR was the key driver of parallel market pricing behaviour, with many market players using it as a benchmark for forward pricing and costing of goods and services as well as determination of foreign exchange in the market. Given the findings of the inquiry, the Government has taken the decision to allow trading on the ZSE to resume on 3 August 2020.
“However, the three internationally listed stocks, namely Old Mutual, Seedco International and PPC Limited remain suspended from trading for the time being, whilst further consultations continue on the best way forward regarding their re-listing under suitable rules.”
Old Mutual, however, expressed confidence that an amicable solution will be reached soon. It said it support Government’s efforts aimed at promoting economic stability the absence of which will result in the company failing “to protect the value of and generating returns on funds invested on behalf of clients.”