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PPC LIMITED - Exchange Control Directive RU102/2019 Issued by the Reserve Bank of Zimbabwe

Release Date: 01/07/2019 10:25
Code(s): PPC PPC003     PDF:  
 
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Exchange Control Directive RU102/2019 Issued by the Reserve Bank of Zimbabwe

PPC Ltd
(Incorporated in the Republic of South Africa)
Company registration number: 1892/000667/06
JSE code: PPC
JSE ISIN: ZAE 000170049
ZSE code: PPC
JSE code: PPC003
JSE ISIN: ZAG000117524
(“PPC” or “Company”)

EXCHANGE CONTROL DIRECTIVE RU102/2019 ISSUED BY THE RESERVE BANK OF ZIMBABWE –
PERTAINING TO TRADING OF SHARES OF DUALLY LISTED FIRMS ON THE ZIMBABWE STOCK
EXCHANGE OR EXTERNAL EXCHANGES.

1     Background

     The Reserve Bank of Zimbabwe issued a directive in terms of section 35 (1) of
     the Exchange Control Regulations, Statutory Instrument 109 of 1996, being
     Exchange Control Directive RU 102/2019 (“Directive”) which amongst other
     issues deals with matters pertaining to trading of shares of dually listed
     firms on the Zimbabwe Stock Exchange or external stock exchanges.

2     Directive

      The relevant part of the Directive provides that:

     Trading of Dual listed shares

     14.1   Authorised Dealers are advised that with effect from 25 June 2019, any
            investor who shall purchase a dual listed share on the Zimbabwe Stock
            Exchange (ZSE) shall only be allowed to sell the share on the ZSE or on
            an external stock exchange after a vesting period of ninety (90) days
            from the date of initial purchase.

     14.2   For investors wishing to uplift dual-listed shares from external bourses
            for purposes of selling the shares on the ZSE, such sales shall only be
            allowed to be executed after a period of ninety (90) days from the date
            of registration on the ZSE.

     14.3   For investors who have already acquired the dual-listed shares on the
            ZSE and are desirous of disposing of such shares, Exchange Control
            directs that such sales can only be allowed in instances where the
            shares have been purchased on or before 20 March 2019.

     14.4   The procedures for trading in dual-listed shares on the ZSE as
            previously communicated by Exchange Control on 26 May 2016 shall remain
            operational.

3     Implications

      The implications of this Directive are as follows;

     3.1    Any investor who purchases shares in a dual listed Company will only be
            able to dispose of the shares after a period of 90 days from the date of
            the original purchase.

     3.2    The directive also has a retrospective effect in that only those who
            acquired their shares on or before 20 March 2019 qualify to dispose of
            their shares if they so wish.

     3.3    Locals investors holding shares in dual-listed entities will not be able
            to sell their shares until the maturity of the vesting period of 90
            days.

4     Conclusions

      Shareholders should carefully     consider   these   changes   and   the   implications   when
      trading in their shares.

1 July 2019

Sponsor
Merrill Lynch South Africa (Pty) Limited

PPC:
Anashrin Pillay
Head Investor Relations
Tel: +27 (0) 11 386 9000

Financial Communications Advisor:
Instinctif Partners
Gift Dlamini
Mobile: +27 11 050 7536

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