Mumias’ woes deepen as Nairobi bourse suspends shares from trading
Mumias Sugar Company woes has deepened with Nairobi Securities Exchange (NSE) suspending trading in its shares for three months.
The bourse alerted all shareholders, investors and the general public of the share trading suspension yesterday after the debt-ridden sugar miller was placed under receivership by KCB Bank on Tuesday.
“The suspension in trading of the company’s shares takes effect from today, September 26, 2019, and shall remain in force for a period of three months or such other period as may be determined by the Authority,” NSE said in a public notice.
It said the suspension was issued by the Capital Markets Authority (CMA) pursuant to Regulation 22(a) of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulations, 2002.
Mumias Sugar Company becomes the fourth firm to be suspended from trading on the NSE after National Bank of Kenya (NBK), ARM Cement Plc and Deacons E.A Plc.
The miller’s share price, which has been on a long-term decline on the back of losses and a dividend drought, closed trading at Sh0.27 on Tuesday. The highest the shares have traded in the last one year is Sh0.90.
Mumias was placed under administration for defaulting on loans amounting to Sh12.5 billion it owes the bank and other creditors.
The suspension has been greeted with mixed reaction from shareholders, investors and the general public with others supporting the move, saying itwould stabilise the firm while others think the company will be sold after being placed under administration.
