Cottco postpones AGM

HARARE - Cottco Holdings Limited (Cottco) has postponed its annual general meeting (AGM) which was scheduled for today, a few weeks after the agricultural concern cancelled an extraordinary general meeting (EGM).

The company’s acting secretary Pious Manamike yesterday said the postponement was caused by the group’s failure to produce its annual results on time.

“Further to a notice published on November 16, 2015, shareholders are hereby notified that the AGM of the members of Cottco that was due to be held on Wednesday, December 9, 2015 (today)… has been postponed to Wednesday, December 23, 2015,” he said yesterday.

The financial results in question were released last week, after the embattled cotton company cancelled its EGM which was to see shareholders meet over government’s proposal to take over the struggling company’s debt and convert it to equity following cancellation of the initial meeting.

This comes after the troubled company whose shares are currently suspended from trading on the local bourse was forced by the Zimbabwe Stock Exchange to postpone its proposed EGM after alleged violation of the Zimbabwe Stock Exchange (ZSE) listing rules.

“Further to the notice published on October 5, 2015, shareholders are hereby notified that the EGM of members of Cottco Holdings Limited that was due to be held on Thursday, November 5, 2015, has been postponed to a date to be advised in due course by way of a fresh notice,” the acting company secretary said.

Manamike said shareholders are also to discuss the impact or dilution of current shareholders in government was to assume Cottco debt and take up shareholding in the ailing company.

Reports indicate that the said transaction will see conversion of debt amounting to $56 million into equity.

Through the National Social Security Authority, government holds about 22 percent in Cottco.

Comments (2)

With a well know weak ifs as, where will government get money for athe series of debt assumptions ;RBZ, TelOne, Cottco etc.? Or, it simply means they will pay at there own pace if at all. This government takeover is also personally worrying given the instructive poor performance history in a long list of parastatals?

Ben - 9 December 2015

I hope the postponement does not affect opperations of farming activities,since the farmer will be kept gessing of the exact position of cottco and government.

Joel Charamba - 14 December 2015

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