HomeBusinessZSE lifts Meikles suspension

ZSE lifts Meikles suspension

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THE Zimbabwe Stock Exchange (ZSE) yesterday lifted the suspension of Meikles Limited which was suspended from trading last Monday.

BY VICTORIA MTOMBA

Sources close to the issue said the ZSE suspended the hotel group without prior consultations and without following the right procedures.

Meikles had filed papers against the ZSE so that the group could be reinstated on the local bourse.

As of yesterday the ZSE on its daily commentary said it reinstated the hotel group on the local bourse without elaborating.

“Meikles Limited’s suspension has been lifted with immediate effect,” the ZSE said in its update yesterday.

ZSE CEO Alban Chirume said he could not comment on the issue, but would issue a statement.

“We will issue a statement. As I am out of the office at the moment,” he said.

It is understood that the ZSE reinstated the hotel group, but it is still working towards following the right procedures and will compile the evidence against Meikles.

Sources said the hotel group failed to disclose the revised amount of money it is owed by the central bank as per requirement by the ZSE.

The ZSE suspended the hotel group pending clarification on its financial results.

According to amendments contained in the Reserve Bank Debt Assumption Bill, which has been tabled for debate in Parliament, Meikles is among 60 other firms and 466 individuals that are owed a total of $1,424 billion by the central bank as at the end December 2013.

Data from parliament shows that the central bank owes $47 million to Meikles compared to the $90 million that was quoted last year by the group.

Meikles corporate secretary told NewsDay last week that no formal communication has been made to the group about the suspension by ZSE.
Meikles Limited last year posted a loss of $2,8 million for the six months ended September 30 2014 compared to a profit of $37,5 million registered during the same period in 2013.

The group posted an Earnings Before Interest Depreciation Tax Amortisation (EBIDTA) loss of $1,5 million for the six months to September 2014 compared to a profit of $1,5 million same period in 2013.

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