Stock exchange suspends Tongaat Hullet’s Zimbabwe unit

ZIMBABWE – The Zimbabwe Stock Exchange (ZSE) has suspended Tongaat Hullet Zimbabwe’s subsidiary, Hippo Valley Estates Limited, from trading its shares on the local bourse.

According to the stock exchange, the follows the sugar giant’s failure to release its full year financial results for the period ended March 31, 2019.

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Hippo Valley missed the June 30 deadline for the release of its full-year financials and also missed the extended deadline of July 31, which was related to accounting glitches at the South Africa based parent company.

ZSE chief executive officer, Mr Justin Bgoni, said in a statement that the suspension has been approved in line with the Securities and Exchange Commission of Zimbabwe as per the regulations guiding listed companies.

The regulator had turned down the company’s request to further extend the release of the financial results after Hippo failed to meet the initial 30 June and 31 July 2019 deadlines.

Despite indicating the financials will be issued mid-August, Hippo has failed to meet the deadline again.

“The Zimbabwe Stock Exchange Limited (ZSE) hereby notifies the investing public that trading in the shares of Hippo Valley Estates Limited (Hippo) on the Zimbabwe Stock Exchange (“ZSE”) has been suspended with effect from 21 August 2019,” reads the statement.

Mr Bgoni said Hippo was obliged to continue to comply with all the listing requirements applicable to it during the period of suspension.

These will include; “submitting to the ZSE at least once every quarter or at such other times as the ZSE may determine progress reports relating to the state of affairs of the company and any proposed action by it,” he said.

Hippo is also expected to advise shareholders on a quarterly basis about the state of affairs of the company and any proposed action by the company, including the date on which it expects that the suspension will be lifted. 

In the year to the end of March 2018, Hippo Valley stated that operating profit amounted to US$17 million, significantly up from the US$13.4m recorded for the prior year

The parent company, Tongaat Hullet has also been suspended from the Johannesburg Stock exchange and has unveiled that it will delist its shares from the London Stock Exchange.

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