[2008-07-14]  Trust moves closer to re-listing
TRUST Holdings Limited (THL) has moved closer to re-listing on the Zimbabwe Stock Exchange (ZSE) with the delayed publication of the 2007 year-end financial results, which showed the group had turned the corner and transformed into a robust investment holding firm.
Results for the year to December 2007 became due at the end of March 2008, so the delayed publication of the THL results stalled an early re-listing on the ZSE.
The group terminated its strategic partnership agreement with First Mutual Limited (FML) last year under which it had acquired a 14.73 percent shareholding in FML.
FML, now called Africa First Renaissance, had a 25.07 percent shareholding in Trust.
Josephat Sachikonye, the Trust board chairman, said the two institutions had swapped shares and ceased to be cross shareholders on October 17 last year. With the termination of the strategic partnership agreement with FML, it became necessary for THL to divest from First Mutual Re-Insurance (5.36 percent) and Tristar Insurance Company (27.5 percent),” said Sachikonye.
The disengagement gave Trust the opportunity to re-focus, he said, and change its strategic direction for the enhancement of shareholder value through the creation of strategic business units. Trust had received a basket of quoted shares under the share swap with FML.
Sachikonye said the group remained in pursuit of a re-list on the ZSE because it still held significant listable value even without Trust Bank Corporation Limited, its prized asset taken over by the Reserve Bank of Zimbabwe (RBZ) in 2004 after the group failed to pay back huge sums of money lent during a liquidity crunch.
The group also lost a number of key assets since suspension from the bourse.
It last year sold Trust Finance Limited, better known as Trustfin, to TN Financial Holdings, which now holds a 75 percent stake in the company.
Unit Administration Limited, THL’s biggest creditor in Malawi, seized 45 percent and 60 percent stakes in THL’s Malawi subsidiaries, Trust Securities and Trust Finance Limited respectively, after the group failed to get funds for recapitalisation of the two units.
THL retained a 25 percent stake in Trustfin, but with no control in the three financial assets.
THL now has an asset mix comprising investments in properties and equities and now holds securities previously held by the RBZ for liquidity support granted to Trust Bank.
Sachikonye said since the last annual general meeting of shareholders, a lot of effort had been put in ensuring that the suspension of trading of the group’s shares on the ZSE is lifted.
“Most of the ZSE pre-listing requirements have been met and a draft pre-listing statement already adopted. The only major outstanding item is the 2007 audited financial report that will be submitted to the ZSE once members of the company have adopted it at this AGM,” he said


Source: Financial Gazette