Border Timbers shares suspended

HARARE - Border Timbers shares were yesterday suspended from trading at the Zimbabwe Stock Exchange after the company failed to publish its financial results.

The timber producer has not been able to publish its results because of international arbitration proceedings between the company, other private parties, and the Government of Zimbabwe, at the International Centre for the Settlement of Investment Disputes, in respect of the compulsory acquisition of its land.

An award was issued in the company’s favour in 2015, but the government subsequently filed an application to annul the award, the decision on that application is still pending.

“The ZSE hereby notifies the investing public of the voluntary suspension from trading in shares of Border Timbers with effect from November 12, 2018 pending publication of audited financial results for the year ended June 30, 2018,” ZSE chief executive Martin Matanda said in a notice. 

“At the company’s request, the ZSE sought and was granted permission to suspend trading in Border Timbers Limited’s shares by the Securities and Exchange Commission of Zimbabwe pursuant to the provisions of the Securities and Exchange Act.

“In terms of the ZSE Listings Requirements, the company should continue to discharge its obligation to the shareholders and the exchange during the suspension,” he said.

On its part, the troubled timber firm said the outcome of the Annulment Application, which is expected at any time from now, will have a material impact on the financial statements of the company.

“For this reason, the company has been unable to finalise and publish the abridged financial statements for the period ending 30th June, 2018.

“The impact of the decision on the financial statements is likely to have a material impact on the share price,” the company said yesterday in a cautionary statement.

“As an additional precaution for all shareholders and the investing public, the company has requested the exchange to effect a voluntary suspension of the company’s counter from trading, with effect from Monday, 12th November, 2018, until further notice,” read the statement.

The company says a lifting of the suspension will be sought once there is clarity regarding the effect of the award and the company’s ability to publish its financial statements with certainty.

“Meanwhile, the company assures all stakeholders that the company is trading as normal and will shortly publish a trading update providing a historical and current position,” the company said.

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