Capital Markets Authority draws out Mumias share freeze
Investors yearning to trade in Mumias Sugar Company shares will have to wait a little longer after the Capital Markets Authority (CMA) announced it had extended the company’s trading suspension for an extra three months.
The extension means that the 130,951 small investors who own shares in the ailing sugar miller will have to wait longer to access their stock which has remained frozen since the company was placed under receivership in September this year.
In a statement, Nairobi Securities Exchange (NSE) said CMA had extended the suspension, effected September this year, for a period of three months beginning this December 27.
“Notice is hereby given on the extension of suspension from trading of Mumias Sugar Company Plc shares following the placement of the company under receivership on September 20, 2019,” the statement from NSE read.
“The extension of suspension from trading the company’s shares is for a further three months with effect from December 27, 2019.”
In September, CMA suspended Mumias shares from trading after the miller was placed under receivership over Sh12.5 billion it owed KCB and other creditors.
CMA also extended the suspension of Deacons East Africa shares from trading for a similar period beginning December 2 this year after the board of the insolvent fashion retailer appointed joint administrators to run its affairs.
“Notice is hereby given on the extension of suspension from trading of Deacons EA Plc shares following the appointment of joint administrators by the board of the company to run its business in accordance with the Insolvency Act No 18 of 2015,” a statement from NSE reads.
“The extension of suspension from trading the company’s shares is for a further three months with effect from December 2, 2019,” it adds.
The collapse of Deacons was fuelled by the loss of Woolworths and Mr Price, its key franchises, in addition to heavy debts and increased competition.
Investors who have shares in both companies have no option but to wait, according to analysts.