By Anyway Yotamu
HARARE – West Properties, a company owned by Controversial businessman Kenneth Raydon Sharpe’s bid to list on the Victoria Falls Stock Exchange (VFEX) hits snag after lawyers representing several companies and one businessman have written a letter to the Victoria Falls Stock Exchange (VFEX) CEO and the Securities and Exchange Commission of Zimbabwe challenging the recent listing of WestProp on the stock exchange for allegedly making false statements of its litigation report.
In a letter dated April 13, 2023, through their lawyers Mutumbwa Mugabe and Partners, Fairclot Investments, Coolfitch Investments, Glasswing Investments, Halinka Investments and Harare businessman Georgios Katsimberis allege that WestProp failed to disclose the true extent of its legal troubles, potentially breaching the Securities and Exchange Act.
“Our clients believe, with good reason, that Appendix 3 has been deliberately crafted with very little detail in order to mislead. Our clients believe further that certain crucial litigation with the potential to materially affect the value of the securities being registered has been omitted with the result (if not the aim) that potential investors are likely to be misled as to the true value of the securities being offered by the Issuer,” read part of the letter.
In a response dated 14 April 2023, Securities and Exchange Commission Chief Executive, Anymore Taruvinga wrote to Victoria Falls Stock Exchange CEO, Justin Bgoni requesting representations over the matter.
“We received a letter of complaint from Mutumbwa, Mugabe and Partners on
behalf of the following:
Fairclot Investments (Private) Limited t/a Trucking and Construction (Private) Limited, Coolfitch Investments (Private) Limited; Glasswing Investments (Private) Limited; Halinka Investments (Private) Limited and Mr.
Georgios Kastimberis against WestProp Holdings Limited.
The letter of complaint is also addressed to yourselves.Scannlen & Holderness.
As the VFEX is the listing authority, we require you to provide us with your representations on the matter by the 21st of April 2023″, the letter reads.
The letter of complaint is also copied to the Minister of Finance and Economic Development, Professor Mtuli Ncube and his Permanent Secretary George Guvamatanga.
West Properties announced its plans to list on the United States dominated bourse understated the number of active court cases against it, misleading potential investors, which is a violation of listing rules.
In its prospectus, WestPro Holdings Limited (as the company will be known) did not mention litigation that has the potential to wipe out all the company’s land holdings.
WestPro, a property development company, intends to list on the VFEX on 28 April 2023.
In the stock market prospectus, a mandatory filing prior to listing, a company must indicate if there is any pending litigation that might affect its future.
