Home » Business » Meikles Mulls Delisting From ZSE? [opinion]

MEIKLES Limited has hinted it might have to consider benefits of maintaining its listing on the Zimbabwe Stock Exchange in the wake of the debacle around its brief suspension from trading.This comes as criticism has been mounting on ZSE chief executive over the manner he handled suspension of trade in Meikles last week, which the bourse itself has since admitted.

Whereas most entities choose listing as an avenue to accessing low cost funding to grow, ZSE firms are exiting the exchange at unprecedented rate citing it as an inhibition to their growth plans.

The hint was dropped by executive chairman Mr John Moxon this week in a statement to put clarity to the mild ructions with ZSE after its suspension over discrepancies in its debt claims.

Mr Moxon said the group had put on hold its planned investment strategy, which the ZSE is aware and other reforms the bourse raised, which included the issue of board directors.

“Meikles will be addressing the implications of the suspension, the manner in which it has been implemented and whether there is any purpose to a listing on the ZSE,” Mr Moxon said.

Meikles is dually listed on London Stock Exchange and ZSE, where it has a primary listing. This though, would have serious implications on the reputation of the ZSE and country at large.

Meikles claims that based on the agreement negotiated in good faith with the RBZ, the sum due to Meikles was now in excess of $90 million due to interest accruing from the passage of time. The group said there now was uncertainty whether its planned strategy would be feasible and, if so, when.

It said the actions of ZSE had questioned “an entire investment strategy for this group and perhaps for others who are interested in furthering the economic interests of Zimbabwe.”

The ZSE can, certainly, not afford to continue losing companies at a time none have shown interest to list, especially over handling of issues Meikles claims ZSE was fully aware of all along.

Agro-focused firm Chemco delisted last year after having applied for voluntary suspension in 2012. Apex, one of the oldest counters on ZSE, was struck off the ZSE’s register in July last year.

Horticultural concern Interfresh delisted after shareholders’ approval to voluntarily leave the bourse.

Source : The Herald

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