Border Timbers shares finally settled on CSD

Border Timbers shares finally settled on CSD
Published: 22 August 2017
Border Timbers' shares were yesterday registered on the Central Securities Depository, becoming the last listed counter to do so, two years after the Zimbabwe Stock Exchange automated.

"Shareholders, capital market players and the investing public are hereby advised that Border Timbers Limited securities will be cleared and settled on the Central Securities Depository, in an electronic form with effect from Monday, 21st August 2017.

"All Border Timbers Limited trades as from Monday, 21st August 2017 and thereafter shall be cleared and settled through the CSD," said Border Timbers in circular to its shareholders.

The agro-industrial concern, under provisional judicial management, reported revenue for the half year to December 2016 fell 35 percent to $8, 7 million compared to $13, 5 million in the comparable prior year period.

The company operates five estates and sawmills in Eastern Zimbabwe and was placed under judicial management after failing to service debts to financial institutions worth $20 million.

In July 2015, the ZSE dumped manual trading in favour of electronic transacting with the launch of the automated trading system.

The ATS is the front end of the trading cycle, and the CSD being the back end, mandated for settlement of both scrip and cash.

ZSE acting chief executive Mr Martin Matanda said while all securities have to be dematerialized and on-boarded on the CSD, the process remains voluntary.

"The on boarding process by the issuer is voluntary and involves the issuer, transfer secretaries, CDC and to a limited extent, the ZSE," said Mr Matanda by email.

"The consequence of not on-boarding is that the shares concerned cannot be traded on the ATS platform and this may inconvenience shareholders," he said.

There are currently 65 listings on the local bourse inclusive of the debt listing. Of these, 63 are active while two are inactive on suspensions.
- bh24
Tags: Timber,


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