Mugabe's company grab threats tumbles Zimplats share prices

In exclusive letters obtained by Radio Vop, Australian Stock Exchange (ASX) in a letter dated March 8, 2011 addressed to Zimplats Investor Relations manager, Katherine Brown demanded to know the reasons why the platinum giant’s share price tumbled early this month from $15.99 to an ‘intra-day low’ of $12.50.
 
ASX listings adviser, Styn Timmermans in a letter to Zimplats said : “We have noted a change in the price of the Company’s securities from a close on Thursday, 3 March 2011 of $ 15.99 to an intra-day low of $12.50. Is there any other explanation that the Company may have for the price change in the securities of the Company?”
 
Brown said Zimplats according to ‘Listing rule 3.1 ‘ of ASX any company listed is required to give information on the drastic changes of the share price to the stock exchange body.
 
In a response Zimplats explained that they have no explanation that could explain reasons why the share prices of the company tumbled early this month but attributed the fall in prices to media coverage on the Indigenization and Empowerment regulations that are threatening to seize 51 percent of foreign owned companies.
 
Mugabe has threatened to take over foreign owned companies whose host countries imposed targetted sanctions on himself and his top party and government officials on human rights violations.
 
Zimplats assured ASX that negotiations with government on the call by the government for the platinum company to cede 51 percent shares to locals are on going.
 
“Shareholders have been regularly advised that discussions with Government of Zimbabwe on Zimplats empowerment proposals are still on-going. There has been no change to this position,” Zimplats said.
 
“The company confirms that it is in compliance with the listing rules and in particular listing rule 3.1. The company would like to emphasise that its majority shareholder. Impala Platinum Holdings Limited, is a long-term holder and not a seller of the securities that it holds.”
 
Mugabe blasted Zimplats at his 87th birthday last month saying the company has not given the country ‘any cent’. “Zimplats has never given us any substantial money,” Mugabe said.
 
“They are taking all the money to South Africa that’s why I have told (Indigenisation Minister Saviour) Kasukuwere to deal with those mines.”
 
Zimplats is owned by Implats of South Africa which controls 87 percent shares in the company while 13 percent is owned by private shareholders. The company says it has developed the community around in schools, clinics and houses for the community around the company’s mine.