THE Securities Commission of Zimbabwe (SECZ) and a minority shareholder in Lifestyle Holdings on Tuesday filed an urgent application at the High Court seeking an interdict to stop the holding of the firm’s Scheme of Arrangement meeting scheduled to take place tomorrow .
Staff Reporter Lifestyle Holdings and Zimbabwe Stock Exchange (ZSE) are cited as the first and second respondents, while minority shareholder Christopher Mutsvangwa is the second applicant. Mutsvangwa is also a SECZ commissioner. SECZ, through an affidavit deposed by chief executive officer Tafadzwa Chinamo, argued that Lifestyle had not complied with ZSE listing requirements and that the transaction proposed of delisting the company, was in violation of the rules requiring transparency and independence, particularly of the advisors to the company. Lifestyle uses TN Financial Services as its advisors. This, Chinamo said, is prejudicial to minority shareholders. Lifestyle is planning to delist in what the group says is an innovative way to circumvent Zimbabwean sovereign risk and raise capital on international markets. The furniture company is proposing a scheme of arrangement which involves the offer to issue shares in the Mauritian-registered TN Harlequin Luxaire International Limited (TNHL) in exchange for shares in Lifestyle.
Chinamo argued that a company like Lifestyle must set up a trust account and deposit the sum equivalent to the value of the shares so that any shareholders who opt not to take up the shareholding in Mauritius will be assured of payment.
When contacted for comment, Lifestyle chief executive Tawanda Nyambirai said the company was in the process of filing its opposing papers.
