Why Mumias Sugar won't trade on NSE until quarter2, 2020
The Mumias Sugar Company's main gate. FILE PHOTO | NATION MEDIA GROUP
What you need to know:
- The troubled miller was initially suspended from trading on the bourse in September after KCB Group took over its operations.
Troubled Mumias Sugar Company is unlikely to have its shares back to trading on the Nairobi Securities Exchange (NSE) before the second quarter of 2020 after the markets regulator extended its suspension from the bourse.
In a notice to shareholders and the public Thursday morning, NSE says the move by the Capital Markets Authority (CMA) follows placement of the company under receivership on September 20, 2019.
"The extension of suspension from trading the company’s shares is for a further 3 months with effect from December 27, 2019. All shareholders, investors and the general public are asked to take note of the suspension," the statement says.
Since 27th falls on the last Friday of March, this means the earliest its shares could trade on the NSE in the event the suspension is lifted would be April 2020.
Mumias Sugar was quietly suspended from the NSE in September after KCB Group took over operations of the troubled miller.
The firm had defaulted on Sh12.5 billion loans owed to the lender and other creditors. KCB is claiming Sh480.1 million.
Mr Ponangipalli Venkata Ramana Rao was then appointed receiver-manager by the lender.
The trading freeze effectively blocked its retail investors, who hold a 64.7 per cent stake in the company, from accessing their shares.
Following the takeover, KCB has been stopped by court from selling its assets, with meetings being held by creditors and Kakamega county government to agree on plans towards reviving the company.
