Lafarge Cement Zimbabwe suspended from the Zimbabwe Stock Exchange

TRADING OF Lafarge Cement Zimbabwe Limited shares on the Zimbabwe Stock Exchange (ZSE) has been suspended effective Friday (today).

The suspension is for a period of three months.

This is at the request of the cement manufacturer, ZSE said in a statement.

The move is a result of material developments in Lafarge’s field following the recent closing of an agreement to sell 76.45 percent of Associated International Cement Limited’s stake to a local company, Fossil Mines (Private) Limited.

In a statement, ZSE CEO Mr Justin Bgoni said at the request of Lafarges that the ZSE has sought and been granted permission to suspend trading of its shares by the Securities and Exchange Commission of Zimbabwe under the provisions of Article 64(a) (ii) of the Securities and Exchange Act [Cap 24:25].

The Zimbabwe Stock Exchange Limited (ZSE) hereby informs the investing public of the voluntary suspension of trading of shares of Lafarge Cement Zimbabwe Limited (Lafarge) effective January 13, 2023, Mr Bgoni said.

Mr Bgoni said that in terms of Section 9 of the ZSE Listings Requirements, the company must continue to meet its obligations to shareholders and the Zimbabwe Stock Exchange during the suspension.

He said the ZSE has asked Lafarge to provide a roadmap on how they plan to solve the challenges they face.

Lafarge Cement Zimbabwe Limited will publish a public notice addressing this point in due course. Investors will not be able to buy or sell Lafarge shares during the suspension period, he said.

In December, the company assured stakeholders that it does not expect any disruption to its operations as a result of the illegal economic sanctions imposed on key individuals and companies associated with majority shareholder Fossil Mines (Private) Limited by the United States Office of Foreign Assets. States of America. Control (OFAC).

That was after OFAC designated four Zimbabwean individuals and two Zimbabwean entities and removed 17 people from its Specially Designated Nationals and Blocked Persons (SDN) list.

The US government said the individuals and entities including Fossil Agro boss and Fossil Contracting boss Mr. Obey Chimuka are associated with Sakunda Holdings CEO Mr. Kudakwashe Tagwirei.

In June last year, Fossil Mines (Private) Limited entered into a binding agreement to purchase 76.45 percent of the shares in Lafarge Zimbabwe, which is now owned by the Holcim Group of Switzerland through its subsidiary, Associated International Cement Limited.

Prior to the sale of its 76.45 percent stake, Holcim Group invited interested bidders to submit their expressions of interest to ABSA Corporate and Investment Banking of South Africa, the group’s financial advisors.

After evaluating the expressions of interest on March 1 last year, Holcim then invited suitable investors to submit a binding offer for the acquisition.

Fossil Mines was one of five invited companies to take over through an auction system.

Fossil’s offer was supported by the support of local banks, pension funds and asset managers, and the company’s financial advisors plus on-site commercial lawyers to act on behalf of the company in the offer.