HARARE- The Zimbabwe Stock Exchange has received regulatory approval from the Securities Exchange Control of Zimbabwe to move forward with the suspension of Hippo Valley shares trading on the main board.
THE suspension follows failure by the company to comply with ZSE rules guiding the publication of financial statements of listed companies.
Hippo Valley Estates Limited is engaged in the growing and milling of sugarcane and other farming operations. The Company, through its subsidiaries, is engaged in the development and sale of township stands.
The Company has a 50% interest in Mkwasine Estate, which is engaged in the growing of sugarcane and other agricultural operations, and Zimbabwe Sugar Sales Limited, which acts as a broker to the sugar millers. It has a 32.56% interest in the Tokwane Consortium.
The Company also has a 33.3% interest in Sugar Industries, which is a packer and distributor of refined sugar in Botswana, and a 49% interest in NCP Distillers Limited, which is engaged in the conversion of molasses into alcohol.
Hippo is entangled in a crisis pitting its JSE listed parent Tongaat Hulet which is accused of manipulating its earnings over a couple of years. It is likely that subsidiaries could have also been involved in the manipulation as their results are the ones factored into the group’s final results.
Hippo’s financials may therefore also need to be reviewed to ascertain their fair
Tongaat has regional operations including Zimbabwe where it holds a majority stake in the JSE listed company.
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