ZSE wades into fight for control of CFI

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HARARE: The fight for the control of agro-industrial group, CFI Holdings took a new twist on Friday with the Zimbabwe Stock Exchange (ZSE) saying it was not informed that Messina Investments had passed the 35 percent shareholding threshold which compels it to make a mandatory offer to minorities.
This following Messina’s informal counter offer to buyout CFI minority shareholders at 46 cents per share.
On Thursday Messina Investments published a notice in the press saying that it already holds a 42 percent shareholding in CFI and at the same time offered to purchase shares from minorities at 46 cents per share exclusive of charges.
Earlier this this month, Stalap, an investment vehicle owned by Zimre Holdings and the National Social Security Authority, made a minority offer at 22 cents per share.
The two major shareholders, Stalap Investments and Messina Investments are in a battle for control of the agro-industrial group, CFI, with the later encouraging minority shareholders to ignore the minority offer by Stalap.
Stalap currently owns 41 percent shareholding in the agro-industrial group, CFI.
“The investing public is advised that Zimbabwe Stock Exchange has not been formally advised that Messina, and any other parties it is acting in concert with, has passed the 35 percent threshold which compels them to make an offer to the minorities in terms of the Zimbabwe Stock Exchange Listing Requirements,” ZSE acting chief executive, Martin Matanda said in a statement on Friday.
ZSE said Messina’s offer to minority is informal and not in accordance with the local bourse regulations.
“The Zimbabwe Stock Exchange views the notice by Messina as an unsanctioned informal offer to minorities and therefore non-compliant with the ZSE’s Listing Requirements,” Matanda said.
ZSE advised investors to desist from off the market deals and trade through formal channels in order to improve market efficiency,” Matanda added.
“The investing public is hereby advised that the Zimbabwe Stock Exchange ATS Trading Rules do not allow off the market transaction in order to promote transparency in the trading of listed securities. As such investors are urged to trade on the Zimbabwe Stock Exchange regulated platform through licensed stockbrokers only in order to guard against risk associated with off market trades.”Advertisement

CFI shares traded at 37,25 cents on Thursday, 69 percent higher than Stalap’s original minority offer price.