Published by the government of Zimbabwe
Walter Muchinguri
3 October 2008
Harare — TRUST Holdings Limited bounced back on the Zimbabwe Stock Exchange in spectacular fashion yesterday after clearing - at the very last minute - a hurdle that had been threatening to scuttle its re-listing.
The re-listing which was coming after a four-year suspension was nearly disrupted by an urgent chamber application that was made by one of its shareholders on Monday.
In his application, which cited the Zimbabwe Stock Exchange and THL as the first and second respondents respectively, the shareholder, Mr Mike Simbarashe Makoni who has 400 000 shares had sought a postponement of the re-listing on the basis that normal re-listing procedures were not properly followed.
He said the pre-listing statement should have been released in advance in order to enable him to have time to engage his financial advisors so as to make an informed decision on whether to dispose or retain his shares.
The application was dismissed at the very last minute just as re-listing proceedings started at the ZSE.
Insiders said they suspected that there could be a force behind Mr Makoni's actions.
Away from the distractions a small parcel of 250 000 shares were sold for $300 000 as trading in THL shares resumed.
It was however the manner in which the prices soared that was impressive since bidding started at a low figure of $5 000 rising to $20 000, then to $40 000 then $100 000 before going on to $120 000 and $150 000 and finally doubling to $300 000.
Most people who attended the re-listing had anticipated the bidding process to end just above 100 000 but were shocked to see it going beyond 300 000.
"As you can see there was only a small parcel of shares that was sold today and that was sold by one broker and this pushed up the price," said one analyst.
THL's non-executive director, Mr Ternard Kwahirai said the group which lost its flagship Trust Bank to ZABG had re-modelled into an investment holding company with three strategic business units, Trust Export Agriculture, Trust Properties and Trust Financial Services.
The restructuring, he said had also resulted in the amicable termination of its strategic partnership agreement with First Mutual Life Limited and the subsequent cancellation of its cross shareholding
"The dis-investment from FML was done to pursue a different strategic direction and that direction has resulted in the THL being re-admitted to the ZSE today.
"The proceeds from the FML dis-investment, received in form of a basket of shares on selected counters, represents a significant value of THL and the shares are being used to capitalise the newly created SBUs," he said.
Going forward, he said THL's focus was now turned towards business growth and cash generation through optimum employment of existing assets.
In addition, he said the group was also focusing on investing in high value projects in the areas of strategic focus, one of which was implemented in the area of export agriculture.
Mr Kwahirai said their long-term view was for each SBU to be individually listed on the local bourse.
"The dream is quite achievable considering the work that has already been done," he said.
ZSE chief executive, Mr Emmanuel Munyukwi was naturally elated at THL's re-listing.
He said as ZSE authorities, they prided themselves in the fact that listed entities will always find a way of emerging from difficulties that may befall them along the way.
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