Old Mutual awaits Govt decision
STAFF WRITER
Zimbabwe’s largest financial services group Old Mutual Zimbabwe Limited says negotiations with the Government of Zimbabwe are ongoing to explore the possibility of resuming trading on the local bourse.
Old Mutual’s share trading on the Zimbabwe Stock Exchange (ZSE) has been suspended since 2020, following allegations that fungible shares were being used to repatriate investments out of the country.
In an exclusive interview yesterday, Chief Executive Officer Sam Matsekete said the group is awaiting the government’s decision.
“…the efforts of engagement between our principals, Old Mutual Limited, who are the issuers of the shares in question, and government, as well as other stakeholders, have continued. And they’ve continued in respect of exploring whether the suspension can be lifted.
“But if not, whether alternative arrangements can be put in place to allow those that are holding the shares and those that seek to hold the shares to trade in the share. As of now, we are still pretty much where we were. And we are also awaiting authorities in terms of how they respond to some of the proposals that have been made,” Matsekete told Business Times.
Old Mutual was suspended alongside Seed Co International and PPC Zimbabwe, both of which also hold listings on foreign exchanges.
Despite their local suspension, Old Mutual has other listings on the Johannesburg Stock Exchange (JSE) and the London Stock Exchange (LSE).
Similarly, Seed Co International and PPC hold regional listings, with Seed Co trading on the Botswana Stock Exchange (BSE) and PPC on the JSE.
Seed Co International is now listed on the Victoria Falls Stock Exchange (VFEX) after delisting from the ZSE, while Old Mutual and PPC shares remain suspended locally.
The suspension of fungibility for these shares prevents investors from buying on the ZSE and selling on foreign markets, a practice authorities deemed equivalent to illicit foreign currency outflows, particularly sensitive amid severe currency shortages.
