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Senior Business Reporter
THE Zimbabwe Stock Exchange Limited (ZSE) has instituted a unilateral Securities Halt on the trading of Lafarge Cement Limited shares from 23 December until further notice.
The move is a result of material developments in the sphere of activity of Lafarge following the recent finalization of the agreement to sell 76,45 percent of its stake owned by Associated International Cement Limited to a local firm, Fossil Mines (Private) Limited. In a statement, ZSE chief executive officer, Mr Justin Bgoni, said investors will not be able to buy or sell Lafarge shares during the period the Securities Halt is in effect. “Members of the public are hereby advised that the ZSE has instituted a unilateral Securities Halt in the trading of shares in Lafarge Cement Zimbabwe Limited with effect from 23 December 2022 until further notice,” he said.
“Following the execution of a Sale and Purchase Agreement between Associated International Cement Limited and Fossil Mines (Private) Limited for a 76.45 percent shareholding in Lafarge, there have been material developments in the sphere of activity of Lafarge.” The full impact of these developments are still being assessed and Lafarge will issue a detailed announcement to that effect, Mr Bgoni added. “In the interim, the ZSE will proceed to halt trading in the shares of Lafarge until the issuance of a full announcement by Lafarge Cement Zimbabwe Limited. Investors will not be able to buy or sell Lafarge shares during the period the Securities Halt is in effect”.
In June this year, Fossil Mines (Private) Limited was reported to have entered into a binding agreement to buy 76,45 percent shares in Lafarge Zimbabwe, which is now owned by Holcim Group of Switzerland through its subsidiary, Associated International Cement Limited.
Prior to the disposal of its 76,45 percent stake, Holcim Group invited interested bidders to submit their expressions of interest to ABSA Corporate and Investment Banking in South Africa, the group’s financial advisors.
After the evaluation of expressions of interest on March 1, this year, Holcim then invited suitable investors to submit binding offers of interest for the acquisition.
Fossil Mines was among the five invited businesses for the acquisition through an auction system.
Fossil’s offer was backed by support from local banks, pension funds, and wealth managers, and the company’s financial advisors plus commercial attorneys locally to act on its behalf on the bid.
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