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BUSINESS magnate Nicholas van Hoogstraten is understood to have pulled the plug on agro-industrial concern CFI Holdings Limited annual general meeting (AGM) today.
The controversial businessman is understood to be unhappy about the management of the business.
However, CFI group chairman Mr Simpliciuos Chihambakwe told shareholders who had come for the AGM that the meeting was a nullity since meeting documents could not be sent to shareholders on time, as per Zimbabwe Stock Exchange (ZSE) listing regulations.
“The only way is to postpone this meeting to a later date,” said Mr Chihambakwe.
“We are required to negotiate the postponement of the AGM. One authority has already approved the postponement of this meeting.”
Among other issues, the AGM sought shareholder approval to ratify the exceeded borrowing powers in 2014 and authority to borrow to a cap of not more than US$20 million in 2015.
Analysts however noted that there was more to the postponement that meets the eye.
Business tycoon Mr Nicholas Van Hoogstraten, who has a 23 percent stake in CFI, is not happy with the management of the business.
“I’m the second biggest shareholder, I have 23 percent. The biggest shareholder is Zimre, but it was supposed to be Government. So you know what’s likely to happen and so I had to do something about it,” said Mr Van Hoogstraten.
Zimre Holdings Limited (ZHL) is a diversified concern with interests in reinsurance, property, short-term insurance and financial services.
Early this year, Government’s stake in ZHL was significantly reduced following its failure to follow its rights during a US$15 offer. The underwriter, through NMB Bank, got about 40 percent stake in the group after mopping over 80 percent of the 750 million shares which were floated to raise the US$15 million.
Online Reporter