Trust Holdings to re-list this year

July 15, 2008

By Business Correspondent

TRUST Holding Limited (THL) is ready to re-list on the ZSE this year after satisfying all the requirements, including the preparation of a pre-listing statement and the 2007 Audited Financial Report.

A voluntary suspension of trading in THL shares was effected last year when the Reserve Bank of Zimbabwe put the group’s commercial banking subsidiary, Trust Bank Corporation (TBC), under curatorship after adjudging it to be in an unsound financial state.

In a statement, THL board chairman Josephat Sachikonye said the group would list without TBC, which is still embroiled in a legal battle with an RBZ-appointed curator over the selling of its assets to the Zimbabwe Allied Banking Group (ZABG).

During the financial period ended December 31, 2007, THL excluding TBC posted a net profit of $79 trillion in inflation-adjusted terms, representing an increase of about 62 percent achieved during the comparable period in 2006. Performance was however driven by commission and investment income.

At the beginning of the fourth quarter last year, the diversified group began a process of restructuring into a solid investment company with strategic business units in export agriculture, real estate and financial services after disinvesting from the First Mutual Group in October. THL owned 5,36 percent of First Mutual Reinsurance and 27,5 percent of Tristar Insurance Company.

“With the termination of the strategic partnership agreement with FML, it became necessary for THL to divest from First Mutual Re-Insurance (5,36 percent) and Tristar Insurance Company (27,5 percent),” said Sachikonye.

The disengagement gave Trust the opportunity to re-focus, he said, and change its strategic direction for the enhancement of shareholder value through the creation of strategic business units. Trust had received a basket of quoted shares under the share swap with FML.

Sachikonye said the group remained in pursuit of a re-list on the ZSE because it still held significant listable value even without Trust Bank Corporation Limited, its prized asset taken over by the Reserve Bank of Zimbabwe (RBZ) in 2004 after the group failed to pay back huge sums of money lent during a liquidity crunch.

The group also lost a number of key assets since suspension from the bourse.

Last year it sold Trust Finance Limited, better known as Trustfin, to TN Financial Holdings, which now holds a 75 percent stake in the company.

Unit Administration Limited, THL’s biggest creditor in Malawi, seized 45 percent and 60 percent stakes in THL’s Malawi subsidiaries, Trust Securities and Trust Finance Limited respectively, after the group failed to get funds for recapitalisation of the two units.

THL retained a 25 percent stake in Trustfin, but with no control in the three financial assets.

THL now has an asset mix comprising investments in properties and equities and now holds securities previously held by the RBZ for liquidity support granted to Trust Bank.

Sachikonye said since the last annual general meeting of shareholders, a lot of effort had been put in ensuring that the suspension of trading of the group’s shares on the ZSE is lifted.

“Most of the ZSE pre-listing requirements have been met and a draft pre-listing statement already adopted. The only major outstanding item is the 2007 audited financial report that will be submitted to the ZSE once members of the company have adopted it at this AGM,” he said.