Company Demands WestProp’s Public Cautionary Statement Over High Court Ruling
By Business Reporter
Lawyers representing Fairclot Investments and others, Mutumbwa, Mugabe, and partners have written to the Securities and Exchange Commission of Zimbabwe requesting that WestProp issues a cautionary statement on the latest developments around one of its proposed properties.
This follows a High Court ruling which canceled title transfers on Stand 654 Pomona Township.
The property accounted for over 50% of WestProp’s portfolio.
In their letter, Mutumbwa, Mugabe and Partners reminded SECZim about an earlier caution relating to WestProp’s inclusion of a property under litigation.
“Evidently, as we had cautioned, the property (Stand 654 Pomona Township) which according to the prospectus accounted for over 50% of WestProp’s portfolio has gone up in smoke. We believe it is not only prudent but a legal requirement that WestProp informs the public by way of a cautionary statement,” read part of the letter from the lawyers
Meanwhile, SECZim through its CEO Anymore Taruvinga acknowledged receipt of letter from Mutumbwa, Mugabe and Partners and also directed the Victoria Falls Stock Exchange (VFEX) to take appropriate action.
“We received the attached letter from Mutumbwa, Mugabe and Partners Legal Practitioners. May you consider the issues raised therein and take the appropriate action in terms of your rules,” read part of Taruvinga’s letter to VFEX CEO Justin Bgoni.
An economist who spoke to this publication on condition of anonymity said the cautionary statement will provide investors with material information on their investments.
“Shareholders have a right to know any material information that may impact the value of their investments. The cautionary statement will provide shareholders with the necessary information to make informed decisions about their investments,” said the economist
Fairclot Investments, Coolfitch Investments, Glasswing Investments, Halinka Investments and businessman Georgios Katsimberis had raised concern over WestProp’s failure to disclose the true extent of its legal troubles, potentially breaching the Securities and Exchange Act.
