The financially troubled Mumias Sugar Company is unlikely to have its shares back to trading on the Nairobi Securities Exchange (NSE) before the second quarter of 2020 after their suspension from the bourse was extended by the regulator.
In a notice to shareholders and the public on Thursday, NSE stated that the move by the Capital Markets Authority (CMA) came after Mumias was placed under receivership in September.
“The extension of suspension from trading the company’s shares is for a further 3 months with effect from December 27, 2019. All shareholders, investors and the general public are asked to take note of the suspension,” the statement read in part.
March 27th will fall on the last Friday of the said month and that means the earliest its shares could trade on the NSE in case the suspension is lifted should be April 2020.
The sugar company was suspended from the NSE in September after KCB Group took over operations to recover their loans.
The miller had defaulted on Sh12.5 billion loans owed to the lender and other creditors including KCB which is claiming Sh480.1 million.
The bank then appointed Mr Ponangipalli Venkata Ramana Rao as the receiver-manager.
KCB has however been stopped by court from selling its assets, with meetings being held by creditors and Kakamega county government to chat ways of reviving the company.