adminExchange yesterday, arousing suspicion that one of the major players in the furniture industry was out on the market.
The transaction was 17,6 percent discount to the group’s last trading price of US0,85c, in trades worth US$419 014.
Coincidentally, a 3,3 percent stake in diversified group TN Holdings with interests in the furniture business was executed at US4c through a cross of 24,5 million shares in trades worth US$980 000.
The deal helped total turnover for the day at the Zimbabwe Stock Exchange to improve 41 percent to US$2,4 million from 89 million shares where foreign investors were net sellers with outflows of US$308 988 against purchases of US$175 729. The deal represents 6 percent stake in Pelhams.
TN has become one of the most liquid stocks on the ZSE having traded 106,2 million shares worth US$3,2 million since August 24, compared to just 32,9 million shares traded in the first eight months of the year. TN is one of the best performing stocks on the ZSE with a YTD gain of 400 percent.
Speculators have linked the transaction to businessman Mr Tawanda Nyambirai as it came two months after TN acquired 36 percent of the furniture group through a special bargain of 358 million shares in late October. However, Mr Nyambirai told Herald Business yesterday that the two transactions were not linked.
Mr Oliver Chidawu owned the shares in question but lost them to businessman Mr Jayesh Shah after failing to repay a US$2 million debt. He had pledged his Pelhams shares as security. Mr Shah subsequently sold the shares to TN Asset Management, a deal Mr Chidawu opposed on the basis that the claim for the US$2 million, which he was contesting, was still before the High Court. Mr Nyambirai bought the shares after stockbrokers ISB Securities approached him, saying the shares were available to the highest bidder.
He then bought the 300 000 ordinary shares at a 58 percent premium and had the share certificates transferred to him. But settlement for the shares could not go through after Mr Chidawu objected to the sale.
Meanwhile, the mainstream industrial index continued downwards, shedding 0,39 percent to close at 139,67 points weighed down by Delta.
Year-to-date the industrial index has lost about 7,45 percent and the mining index has lost 59,41 percent.
The biggest counter on the exchange went down by US1,40c to trade at US70c. Hotel group Meikles slipped US0,51c to close at US20,99c and Turnall fell US0, 50c to US10c as Innscor came off US0,45c to settle at US53,54c as Padenga gave up US0,20c to close at US5,20c. Four counters traded in the positive territory as Hippo led the movers with a US5c gain at US105c, PPC went up US0,10c to trade at US210,10c and
Old Mutual inched up US0,09c to close at US105,10c.
Yesterday, the mining index was steady at 81,35 points as all the four counters were unchanged at the previous trading day’s levels.
Online Reporter