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Acting Business Editor
THE Zimbabwe Stock Exchange (ZSE) has censured hotel group African Sun Limited for contravening the bourse’s listing rules. On February 20, 2014 African Sun published a notice about its forthcoming Annual General Meeting on March 21. The AGM notice, the ZSE chief executive officer, Alban Chirume, said, contained a Special Business section for a disposal transaction by the hotel group of 406, 466, 976 Dawn Properties Limited shares to Lengrah Investments (Private) Limited.
“In terms of Section 9 of the ZSE Listings Rules, the proposed transaction is a Category 1 transaction which requires shareholders’ approval,” he said.
Chirume said the circular and notice thereon for the proposed transaction had not yet been approved by the stock exchange for distribution to shareholders in accordance with the listings rules at the time the notice was published.
He said to maintain the integrity of the market, the ZSE listings rules and all Category 1 transactions and notices by the issuers must be approved by the stock exchange before publication.
“The ZSE therefore directed African Sun to issue a retraction statement for a Special Business section of the AGM notice until the approvals have been obtained,” Chirume said.
He added that all due processes had been followed leading to the decision including steps to enable the observance of the rules of natural justice as provided in the amended Section 111 of the Securities Act (Chapter 24:25).
In compliance with the ZSE directive, African Sun has since issued a statement retracting a Special Business section on the AGM notice. The hospitality group indicated to its shareholders that it would seek approval with the ZSE pertaining to the Special Business at the AGM.
“Shareholders are advised that a detailed circular will be published and distributed as soon as the requisite approvals have been granted by the ZSE. A separate notice for a shareholders’ meeting will be made in due course for the purpose of obtaining the requisite shareholder approval of the transaction as required in pursuant to the ZSE listings requirements,” said African Sun.
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