THE Zimbabwe Stock Exchange (ZSE) listing committee has allowed Zimre Holdings Ltd’s investment vehicle, Stalap Investments to make a mandatory offer to CFI Holdings Limited minority shareholders.
BY TARISAI MANDIZHA
This comes after the ZSE had initially ordered that Stalap could not make the offer given that Messina Investments, British tycoon, Nicholas van Hoogstraten’s investment vehicle, had also reached a threshold higher than 35%, and would also be required to make a simultaneous offer.
NSSA and Zimre control a 42% equity stake in CFI held through Stalap Investments.
ZSE requirements also state that a listed company should not have less than 300 shareholders and at least 30% of the company’s issued share capital should be held by the public.
A letter dated July 10 from ZSE acting chief executive officer, Martin Matanda to FBC Securities managing director, Benson Gasura reads: “Reference is made to the ZSE letter dated July 3, 2017 communicating the listings committee resolution and your response dated July 4, 2017 making representation on the above captioned matter.
“The listing committee has now approved publication of Stalap’s mandatory offer circular to CFI Holdings Limited minority shareholders. Kindly provide the final circular with an amended timetable of events providing for the delays experienced on the previous timetable and proceed to publish.”
Stalap is obliged to make a mandatory offer after CFI announced in March that it now owns 41% in CFI.
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According to the ZSE listing rules, a shareholder who amasses 35% shareholding in a listed company can make a mandatory offer to minorities.
NSSA exchanged its 12,89% equity stake in CFI for a 31,426% stake in Stalap in order to create a 41% equity block in CFI which has more control. This came after NSSA rejected an offer by van Hoogstraten for its shares in CFI.
Van Hoogstraten and the Rudlands, Hamish and Simon have differed widely on how to get CFI going again with the latter pushing a capital rise and the former dismissing the need for the exercise.
In the six months to March 31, 2017, CFI narrowed its after-tax loss to $272 784, from a $6,1 million loss incurred in the prior half year-end, supported by the improved performance of its Farm & City unit.
CFI had current borrowings amounting to $3,5 million and an overdraft of $1,8 million in the same period.
Revenue increased by 30% to $24,9 million during the review period, from $19,1 million recorded the previous year.
