Old Mutual Zimbabwe fungibility suspension extended to 2022
Staff Writer
HARARE, The suspension Old Mutual Zimbabwe shares fungibility together with PPC has been extended by another year to 2022, as government is still considering findings of a probe it commissioned on the dual listed companies.
In a latest extra ordinary Government Gazette, Finance Minister Mthuli Ncube said the suspension will run up to March 11, 2022.
Last year, Ncube suspended the fungibility of shares of Old Mutual, PPC and Seed Co International for a year, which meant that they could not be traded in other bourses they are listed.
Findings of the RBZ’s Financial Intelligence Unit probe report also sucked in brokers, asset managers and share market investors.
Mthuli Ncube, the Finance Minister said the report has found out that whilst there is no observed evidence on the direct involvement of the listed entities themselves, significant evidence of a strong link between the price behaviors and transaction patterns on internationally listed shares and parallel market was also established with varying degrees of casualty.
“In particular the OMIR was observed to be the key driver of parallel market pricing behavior with many market players in the real economy using this highly visible rate as a benchmark for forward pricing and costing of goods and services as well as deterioration of foreign exchange rates in the market.”
Seed Co International, has since listed on the ZSE’ USD denominated exchange, the Victoria Falls Exchange (VFEX).
