Chiyangwa’s Zeco Holdings suspended from ZSE
Harare- Philip Chiyangwa’s Zeco Holdings which is near collapse has been suspended from the Zimbabwe Stock Exchange with immediate effect to allow it to comply with the bourse’s regulations.
The suspension effective 1 December 2016 if valid for three months.
In a statement the ZSE chief executive Alban Chirume said having sought permission from the Securities And Exchange Commission of Zimbabwe , pursuant to section 64(iii) of the Securities Act ,(chap 24.25) the suspension is with immediate effect.
“ The Zimbabwe stock exchange hereby notifies the investing public of the suspension from trading of in shares of Zeco Holdings limited for a period of three months to allow the company to comply with the following obligations,”. Said Chirume
Zeco Holdings has been recording losses since 2009 on the back of deteriorating economic conditions , casting doubt on the company’s future and has on number of occasion failed to comply with ZSE’s regulations concerning shareholders meetings.
A serial offender of the ZSE rules, Zeco had also become a perennial under-performer on the local bourse, with around $500 worth of shares changing hands 2014,
Zeco is also on record for failure to meet deadlines on release of results as prescribed by ZSE.
The obligations that Zeco is supposed to meet before the suspension is lifted include convening shareholders meetings for the year 2014 and 2015,distributing outstanding annual reports for the aforesaid financial year to shareholders and payment of outstanding annual listing fees..
“In terms of section 1:8 of the ZSE listing requirements ,the company should continue to discharge its obligations to the shareholders and the Zimbabwe stock exchange after the suspension,” said Chirume.
The Group’s performance has for years been depressed both in terms of revenue and profitability. Revenue generated from continuing operations declined marginally.
Zeco closed down its plastics business, Zimplastics citing unviability with no prospects of recovery.