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Murray & Roberts shares on the Zimbabwe Stock Exchange fell 28 percent to five cents during trade on Friday following the disposal by M&R South Africa of its 47 percent controlling stake in the company.
The transaction involved Zumbani Capital, a consortium of local investors comprising M&R chairman Mr Paddy Zhanda and the company’s former chief executive Mr Canada Malunga.
The shares declined as the market responded negatively to changes in the contracting group’s shareholding structure.
The transaction saw 2 123 M&R shares changing hands at 5 cents despite having been offered at 9 cents.
M&R SA sold 99 729 515 shares for $1,47 each on the ZSE to Zumbani Capital.
“The new shareholders are committed to engaging and working closely with other shareholders to grow a profitable and sustainable business,” said M&R in a statement.
An economic commentator, Mr Peter Mhaka, said investors could have not seen the complementary role of the deal resulting in value of shares declining.
“There is a possibility that the investors do not see the deal having a complementary role resulting in the decline of the shares sold under the transaction.
“The share price could also reflect that the investors do not have confidence in the shareholders,” he said.
Meanwhile, Kingdom Financial Holdings Limited in its latest commentary noted the persistence of the bearish sentiments on the equities market where industrials ended the week flat at 129,9 points after reaching a Thursday peak of 130,44 points while the mining index retreated 6,5 percent to 91,95 points.
All counters in the mining index save for Bindura retreated during the period under review.
The financial institution said the special bargain of 99,8 million M&R shares at $1,47 was the major highlight that saw total volume for the week jumping 277 percent to 132,5 million.
“Turnover was, however depressed owing to the shorter trading week and totalled $5,87 million, down 10 percent from the previous week.”
Online Reporter