Markets regulator extends suspension of CMC shares again

The Capital Markets Authority (CMA) on Friday extended a ban on the trading of motor dealer CMC Holdings shares for an additional 60 days, to give the company additional time to comply with internal control disclosure requirements.

The market regulator in a statement said that this will also give shareholders enough time to receive and interrogate information on the company before the shares are allowed to start trading again.

Shares of the company were suspended from trading after boardroom wars that resulted in revelations of fraud, lack of disclosure in published financial statements which were distributed to shareholders and conflicts of interest amongst board members.

“The board of the Capital Markets Authority has resolved to extend the suspension of the trading of the shares of CMC Holdings at the Nairobi Securities Exchange for a further period of sixty trading days,” said the market regulator in a statement.

The shares were first suspended from trading on September 16 last year for a period of seven trading days and a further extension of 90 days was effected on September 27.

The ban was also extended for an additional 21 trading days on January 25 this year and on March 5 the suspension was extended to May 31.

In June the ban was further extended for an additional 85 trading days meaning that the shareholders will now have waited more than a year to sell or buy the shares of the motor dealer.

“The extension of suspension has been effected to ensure that all necessary information for investors to make informed decisions is made available prior to the commencement of trading,” said the market regulator in the statement.

The Authority also said that it has taken into consideration a request by the management of CMC for more time to fully stabilise the operations of the firm and come into full compliance with all internal control and disclosure requirements.