Business / Companies
Muponda to attend Interfin AGM, fireworks expected
26 Aug 2011 at 09:07hrs | Views
Gilbert Muponda is expected to attend the Interfin Financial Services (IFS) Ltd's annual general meeting slated for next Wednesday.
This is now the most anticipated AGM as it is billed to be explosive amid speculation that former ENG Capital director Gilbert Muponda will seek to block any further actions by IFS to conceal disputed CFX Financial Services shares through a proposed shareholding integration deal.
IFS wants to acquire a 59,68% stake in Interfin Banking Corporation (IBC), which are shares held by other shareholders in Interfin Banking Corporation. The transaction will involve an exchange of shares in IFS.
This will result in IBC becoming a wholly owned subsidiary of IFS, with all shareholders retaining their pro rata shareholding in IBC through the issue of IFS shares to them.
IFS was formed after the acquisition of a majority shareholding in CFX FS Limited by Interfin Holdings Limited, with the subsequent disposal of the business assets and liabilities of CFX Bank Limited to IBC in June 2010.
IFS emerged with a 40,32% interest in the sole operating asset IBC.
In 2009, when Interfin Holdings was set to acquire a 51% controlling stake in CFX FS after it had been enlisted as underwriter and technical equity partner for the undersubscribed $10 million rights offer, the then exiled Muponda launched a fresh bid to dash Interfin Holdings Limited's plans.
Muponda cited that he had proprietary interest in the shareholding of CFX Financial Services. Obert Gutu of Gutu & Chikowero Attorneys, representing Muponda, wrote to Interfin Financial Holdings advising them about their client's interests in the CFX FS shareholding.
Muponda contested CFX Financial Services' takeover of Century Bank, which belonged to his now defunct ENG Capital Ltd. He demanded an audit on how the troubled financial institution acquired Century Bank when CFX FS merged with Century Holdings in 2004.
He claims 309 million shares belonging to Century Bank were irregularly sold at the time of the merger.
Muponda, who in May this year filed an affidavit in Toronto which was circulated to brokers registered on the Zimbabwe Stock Exchange, cautioned investors on trading in Interfin Holdings shares, saying there was a case of material effect to the company.
Following the revocation of his specification order by the Ministry of Home Affairs in April this year, Muponda has since been pushing for his case against Interfin Holdings to be heard.
Muponda refused to comment on whether he would still push to block the IFS transaction at the AGM, saying: "I will make a full statement in due course. For now I have no comment."
The legality of the takeover of the disposal of ENG Capital shares in Century Holdings had earlier been contested by Nyasha Watyoka, another ENG Capital director, against the liquidator Reggie Saruchera of Camelsa Chartered Accountants.
But according to a High Court ruling in 2004, the court dismissed the application saying it was not urgent.
The court also held that the disposal of ENG Capital shares in Century Holdings was done above board.
This is now the most anticipated AGM as it is billed to be explosive amid speculation that former ENG Capital director Gilbert Muponda will seek to block any further actions by IFS to conceal disputed CFX Financial Services shares through a proposed shareholding integration deal.
IFS wants to acquire a 59,68% stake in Interfin Banking Corporation (IBC), which are shares held by other shareholders in Interfin Banking Corporation. The transaction will involve an exchange of shares in IFS.
This will result in IBC becoming a wholly owned subsidiary of IFS, with all shareholders retaining their pro rata shareholding in IBC through the issue of IFS shares to them.
IFS was formed after the acquisition of a majority shareholding in CFX FS Limited by Interfin Holdings Limited, with the subsequent disposal of the business assets and liabilities of CFX Bank Limited to IBC in June 2010.
IFS emerged with a 40,32% interest in the sole operating asset IBC.
In 2009, when Interfin Holdings was set to acquire a 51% controlling stake in CFX FS after it had been enlisted as underwriter and technical equity partner for the undersubscribed $10 million rights offer, the then exiled Muponda launched a fresh bid to dash Interfin Holdings Limited's plans.
Muponda cited that he had proprietary interest in the shareholding of CFX Financial Services. Obert Gutu of Gutu & Chikowero Attorneys, representing Muponda, wrote to Interfin Financial Holdings advising them about their client's interests in the CFX FS shareholding.
He claims 309 million shares belonging to Century Bank were irregularly sold at the time of the merger.
Muponda, who in May this year filed an affidavit in Toronto which was circulated to brokers registered on the Zimbabwe Stock Exchange, cautioned investors on trading in Interfin Holdings shares, saying there was a case of material effect to the company.
Following the revocation of his specification order by the Ministry of Home Affairs in April this year, Muponda has since been pushing for his case against Interfin Holdings to be heard.
Muponda refused to comment on whether he would still push to block the IFS transaction at the AGM, saying: "I will make a full statement in due course. For now I have no comment."
The legality of the takeover of the disposal of ENG Capital shares in Century Holdings had earlier been contested by Nyasha Watyoka, another ENG Capital director, against the liquidator Reggie Saruchera of Camelsa Chartered Accountants.
But according to a High Court ruling in 2004, the court dismissed the application saying it was not urgent.
The court also held that the disposal of ENG Capital shares in Century Holdings was done above board.
Source - zimind
