Harare – Border Timbers Limited says the decision in the Annulment Application in which it is fighting Government and other private parties following the compulsory acquisition of its land in 2010 is to be finalised soon.
The issue refers to international arbitration proceedings between the Company, other private parties, and the Government of Zimbabwe (“the Government”), pending at the International Centre for the Settlement of Investment Disputes (“ICSID”) (" the ICSID Proceedings") since 2010 in respect of the compulsory acquisition of its land.
In 2015 an award was issued in favour of the Company, however the Government subsequently filed an application to annul the award.
In a statement on the Zimbabwe Stock Exchange the Company said the decision in the Annulment Application, which will be the final decision in the ICSID Proceedings, is expected at any time from now.
“The outcome of the ICSID proceedings 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 ICSID decision on the financial statements is likely to have a material impact on the share price. As an additional precaution for all shareholders and the investing public, the Company has requested the Zimbabwe Stock Exchange to effect a voluntary suspension of the Company’s counter from trading, with effect from Monday, 12th November, 2018, until further notice.”
Border Timbers said a lifting of the suspension will be sought once there is clarity regarding the effect of the ICSID 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.
Accordingly, the Company advised shareholders to exercise caution when dealing in the Company's shares until a further announcement is made.
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