ZSE advised the public in a statement that Barbican Holdings Limited, TZI Limited and Red Star Holdings’ listing has been terminated and they have been removed from the official list with effect from 23 April.
The bourse gave different reasons for each company’s delisting.
Barbican had been on suspension since 2004 following the closure of the company’s banking subsidiary by the Central Bank.
“Since then, Barbican Holdings Limited has failed to meet its continuing obligations. No response has been received from the principals of Barbican Holdings Limited at the last known address,” ZSE said.
Barbican was listed in 2002 and became the 15th financial counter and 76th counter overall on the local bourse.
On TZI ZSE said “The Company was suspended in 2004 following a material adverse event in a Zambian subsidiary. Since then, TZI Limited has failed to meet its Continuing Obligations. No response has been received from the principals of TZI Limited at the last known address”.
Red Star is said to have applied for a suspension rather than a delisting at the time of the conclusion of a Scheme of Arrangement within the group.
“Since then, there has been no report of progress on the purpose of which the suspension was made. Consequently, a decision to terminate has been made,” ZSE said.
For all the three companies ZSE said “in terms of Section 1.18 of the ZSE Listing Rules, holders of Barbican Holdings Limited securities are hereby advised that in view of the termination, the paper is no longer tradable.”
Red Star went into liquidation after its parent company, starafrica, failed to raise funds to clear debts and inject working capital.
West Group is now waiting for starafrica to conclude the liquidation of Red Star Holdings Limited, as it considers acquiring the firm as a debt-free shell.
Analysts say the multi-currency regime which replaced the use of the local currency has served as a double edged sword.
While it effectively dealt with hyperinflation and an uncertain exchange rate on the other hand it led to liquidity challenges.
For companies listed on the Zimbabwe Stock Exchange (ZSE), the impact was the same.
Some companies benefited from the use of foreign currencies by being able to invest in state of the art technology and thus enhancing their capacities.
Other companies like Red Star have found the going tough resulting in the company now being delisted.
Post published in: Business