Chemco warns shareholders

CHEMCO Holdings Limited (Chemco) has warned shareholders in a Cautionary Statement, that it is eyeing more business opportunities.

It could not be established whether these were in Zimbabwe or within the region. Chemco, which is listed on the Zimbabwe Stock Exchange (ZSE), currently has 15,237,659 shareholders.

Its share price stands at 1,00 cents on the bourse. The company manufactures chemicals and chemical equipment.

The Chemco directors yesterday said shareholders should be aware that the company was currently enagaged in discussions that could result in a "transaction that may have a material impact on the value of the company's shares".

"The Directors, therefore, advise shareholders to exercise caution in dealing with their shares," they said in a statement made avalable to this newspaper.

The sponsoring stockbrokers for the transaction are leading investment firm, Imara Investing In Africa (Imara) which has offices in Botswana, Zambia and in Zimbabwe.

Imara is the sister firm of Imara Edawrds Securities (Private) Limited, who are ZSE members and give advice on operations on the bourse.

The move by Chemco comes at a time when six firms listed on the ZSE are on the suspension list.

The six companies under suspension are Barbican Financial Holdings Limited (Barbican), Gulliver Holdings Limited (Gulliver), Interfin Financial Holdings Limited (Interfin), Red Star Holdings Limited (Red Star), Steelnet Holdings Limited (Steelnet), and Trans Zambezi Industries Limited (TZI).

Barbican was suspended from the ZSE while it was operating under Dr Mthuli Ncube.

Ncube then later fled Zimbabwe for South Africa after numerous misdemeanors were unearthed at the institution by the Reserve Bank of Zimbabwe (RBZ).

The RBZ banned Barbican from operating as a commercial bank. Gulliver was facing financial problems before its suspension mainly due to competition from other firms operating in and out of Zimbabwe.

Interfin had its commercial bank subsidiary, Interfin Bank Limited, put under curatorship due to misdemeanors caused by senior management and director who allegedly fleeced the struggling entity until it almost bled to death last month.

Before its suspension, Red Star was facing competition from other firms and also saw a low price for its commodities thus the ZSE suspension, while Steelnet is undergoing various changes.

TZI, on the other hand, is also struggling to recapitalise, according to stockbrokers interviewed in Bulawayo. It has also faced several management changes.

Post published in: Business

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