ZIMBABWE Stock Exchange (ZSE) listed food manufacturer Cairns Holdings Limited has been suspended from trading on the local bourse after it applied to be placed under judicial management, the ZSE said yesterday.
Report by Victoria Mtomba
Cairns join Chemco Holdings, Gulliver, Interfin Holdings and Celsys Holdings on the list of quoted companies that have been suspended mainly due to capital constraints.
Pharmaceutical giant Caps Holdings also delisted as the country’s manufacturing sector continued to teeter on the brink of collapse due to a myriad of problems.
Cairns last traded at 0,5 cents and its share price has lost 50% of its value since January.
ZSE acting chief executive officer Martin Matanda said Cairns Holdings Limited’s board of directors successfully applied for the company to be put under judicial management.
Reggie Saruchera of Grant Thornton Camelsa was appointed the judicial manager on November 28.
“When the matter was brought to the attention of the ZSE on December 4, 2012, a decision was made to suspend trading in the company’s shares with effect from Wednesday December 5, 2012,” Matanda said in a statement.
He said Cairns had been suspended in line with ZSE listing rules, but was expected to continue to discharge its obligation to shareholders during the period of suspension.
The food manufacturing company reported a loss of $1,6 million in the six-month period to February 29, 2012 due to high finance costs.
Cairns lurched into a fresh crisis after the adoption of multiple currencies which triggered working capital constraints.
The Reserve Bank of Zimbabwe (RBZ), which held a 63,58% stake in Cairns, retendered the disposal of its shareholding in the listed food and beverage group last September as the central bank stepped up efforts to shed quasi-fiscal operations by year end.
In yesterday’s trade, the industrial index reversed Tuesday gains after retreating 0,42 points to close at 149,24 points.
Cement manufacturer PPC tumbled 35 cents to 205 cents, Econet dropped
4,91 cents to 480,09 cents, while CBZ and TA Holdings eased a cent to trade at eight cents and 10 cents respectively.
However, Delta gained a cent to 95 cents. PG Industries added 0,35 cents to 0,65 cents and ZHL advanced 0,20 cents to close at 1,20 cents.
The mining index eased 1,02 points (1,54%) to settle at 65,05 points.