Published On: Thu, Dec 1st, 2016

Chiyangwa’s Zeco Holdings suspended from ZSE

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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.