eBusiness Weekly
Tawanda Musarurwa
Sugar processor Hippo Valley Estates Limited’s shares have been suspended from trading on the Zimbabwe Stock Exchange (ZSE) after the firm missed three deadlines to publish its financial results, including two extensions.
The ZSE had previously given Hippo Valley leeway to publish its financial results by July 31, 2019, from the initial publication deadline of June 30, 2019. And last month Hippo requested a second extension to August 14, 2019, which the local bourse granted.
But having failed to meet the August 14 deadline, the ZSE has moved to suspend Hippo Valley’s shares.
“The Zimbabwe Stock Exchange advises members of the investing public that it has put a halt in the trading of Hippo Valley Estates Limited’s shares on the ZSE according to Clause 4.13.2 of the ZSE Trading Rules and Procedures.
“This development has been necessitated by a formal request made by Hippo for the suspension of trading in its securities after it failed to publish its audited financial statements for the year ended March 31, 2019 as per the previous public notices,” said ZSE chief executive Justin Bgoni said in a statement this week.
“The ZSE has now formally requested the Securities and Exchange Commission of Zimbabwe to consider the application for the suspension in terms of section 64(a)(ii) of the Securities and Exchange Act, Chapter 24:25, as amended. The investing public will be advised of the determination by SECZ as soon as it becomes available.”
Under the new ZSE listing requirements, introduced in June under SI 134 of 2019, Hippo Valley is now liable to a penalty fine of $5 000 for late submission of audited annual accounts.
Apparently, Hippo Valley had requested for a further extension to delay the publication of its audited financial statements to October 31, 2019, but the ZSE refused to grant that extension.
Allegations of financial misappropriation against South African-headquartered parent company Tongaat Hullet Limited (THL) had forced Zimbabwean subsidiary, Hippo Valley Estates Limited to postpone publication of its FY2019 results.
The parent company is facing an accounting scandal back in South Africa, which resulted in the suspension of its securities on the Johannesburg Stock Exchange (JSE) in June.
The group’s share was suspended following the JSE’s announcement on May 31 that the company would have to restate its equity by between R3,5 billion and R4,5 billion for its 2018 year.
To this extent, Tongaat Hullet Ltd moved to delay the announcement of its 2019 financial results to October, by which time it is targeting to recommence trading on the South African bourse.
