Business

Govt Extends Suspension Of Fungibility Of Old Mutual and PPC Shares

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By Business Reporter

Finance Minister Mthuli Ncube, has extended the suspension of Old Mutual and cement maker PPC’s fungibility by another 12 months.

“The Government, having received the audit report, is still considering its implications:
“Now, THEREFORE, I, Hon. Professor M. Ncube, in my capacity as an exchange control authority under Part V (“Securities”) of the Exchange Control Regulations, 1996 (Statutory Instrument 109 of 1996), hereby order the suspension, for a period of twelve months from the publication of this general notice ending on the 11th March 2022, of every authority, directive or order granted by any exchange control authority allowing the fungibility of shares of the following companies listed on the Zimbabwe Stock Exchange – (i) Old Mutual Limited; (ii) PPC Limited,” reads part of the notice.

A year ago, the Treasury boss suspended Old Mutual’s fungibility together with Seed Co International and PPC Zimbabwe.

Old Mutual is also listed on Johannesburg Stock Exchange (JSE) and London Stock Exchange while Seed Co International and PPC are present on the Botswana Stock Exchange (BSE) and JSE respectively.

Shares of Old Mutual and PPC remain suspended from trading on the ZSE. The extension of suspension of their fungibility means their shares cannot be bought on the ZSE and sold on foreign markets, which authorities believed was tantamount to illicit flows of foreign currency, at a time it has been very limited.

Robert Tapfumaneyi

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