Two CFI Holdings Limited directors targeted for ouster by Nicholas Van Hoogstraten are not going anywhere, the agro concern’s single largest shareholder Stalap Investments has said.
BY NDAMU SANDU
Van Hoogstraten’s Willoughby’s Investment has requisitioned CFH to hold an extraordinary general meeting of shareholders on December 6 to call for the resignation of two directors, Ephraim Chawoneka and Douglas Mamvura on the basis that the duo represents the interests of the National Social Security Authority (NSSA).
Willoughby said it was calling for the resignation of the NSSA-nominated directors due to the previous history of corruption and conflict surrounding Langford Estates and other various land-related issues. It accused the duo in the inordinate delay and refusal to activate the process to cancel the “illegal Langford Estates transactions and to carry out the forensic land audit”.
But Stalap, with 41% stake in the group, has hit back saying the duo was representing its interests.
“Furthermore, the two were nominated by Stalap Investments (Private) Limited based on an assessment of their excellent track records and potential to contribute to Stalap’s overall business objective of turning around and growing the business of CFI and restoring its previous blue-chip status,” Stalap said.
It said Chawoneka and Mamvura were nominated to the CFI board in March and May this year respectively after the conclusion of the Langford deal. The Langford Estate deal was consummated on October 6 2015, Stalap said, adding that any connection or association of the duo with the Langford transaction “is, therefore, not only defamatory but misplaced and misleading”.
Stalap said it would “stand in support of our nominees and support any legal action that it may deem necessary to correct any injury to their persons with recourse on costs on the accusers”.
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The company threw its weight behind the Langford land for debt swap transaction which “prevented the foreclosure of CFI assets by financial institutions and other creditors to the benefit of all shareholders”.
Fidelity Life acquired Langford Estate from CFI Holdings in a land-for-debt swap deal worth $18 million. The deal involved Fidelity taking over CFI debt to a consortium of banks led by FBC Bank.
There is no love lost between Stalap and Van Hoogstraten. A mandatory offer by Stalap to CFI minorities found no takers after Van Hoogstraten made a counter offer, an action the capital markets regulator said was improper.
Stalap is also pushing for the ouster of Shingirai Chibanguza, a Van Hoogstraten ally, from the board of the Zimbabwe Stock Exchange-listed concern after he was involved in acts of misconduct.
