The Securities Commission of Zimbabwe had filed an urgent chamber application at the High Court seeking an interim order to stop Lifestyle Holdings from holding a shareholders’ meeting to seek permission to delist the company from the Zimbabwe Stock Exchange.
Company directors also wanted to use the platform to seek shareholders’ authority to exchange their shares in Lifestyle for new shares in the Mauritius-based company, TN Harlequin Limited International. Shareholders not willing to get shares in TN Harlequin International Limited would be paid the cash equivalent for their shares in Lifestyle.
Lifestyle Holdings obtained the High Court’s approval to hold a scheme meeting tomorrow to terminate its ZSE listing. But SECZ argues that Lifestyle Holdings has not complied with provisions of the ZSE listing requirements and that the proposed transaction violates rules requiring transparency and independence, especially of the company’s legal and financial advisers.
"This application is for an order indicting the holding of a shareholders’ meeting of first respondent and the scheme meeting scheduled to take place on March 15, 2013 at 10am. The interim order is sought pending the compliance by the respondents with the requirements of Section 1.10a, 1.10c and 1.10d of the Zimbabwe Stock Exchange Listing requirements," SECZ said.
Lifestyle minority shareholder, Chris Mutsvangwa, is listed on the High Court urgent chamber application as second applicant while Lifestyle and the ZSE were cited as first and second respondents.
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