Old Mutual Zimbabwe fungibility suspension extended to 2022

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).