Remo sues Interfin over shares

Filed under court case HC3624/12 on April 5, 2012, Remo cited Interfin Securities as the first respondent while transfer secretaries Corpserve are the second respondents. Remo is seeking to recover shares it handed to Interfin Securities as collateral for loans.

Interfin lent US$6,3 million to Remo MD Mohamed Mahmed and an associate from Zimslate Quartzite, a company the stock-broker was a co-director.

Zimslate borrowed US$2,6 million while Remo borrowed US$3,6 million. The payback date was supposed to be on or before October 31, 2011 with Interfin taking custody of shares registered under Remo nominees.

Zimslate specialises in slate and quartzite natural tiles, which it mainly exports to Europe, Asia and South Africa.

The shares in dispute are CBZ shares totalling five million, Dairibord five million, Old Mutual 700 000 and a million TA Holdings.

Remo alleges Interfin Securities is now unable to return the security after the loan repayment because the shares were used as security for the loans that Interfin obtained from other parties.

It is said that the shares are now being sold by the parties who are the current holders.

Remo says Old Mutual and CBZ shares were sold by other stock-brokers on behalf of their clients, part of them are now registered under different names while Remo had managed to block the transfer of some of the shares and had withheld 300 000 Old Mutual shares.  It is said that some of the shares have been sold to foreign institutional investors.

The two respondents –– Interfin and Corpserve –– are being called upon to show cause why a final order should not be made to have the share certificates in the possession of the Deputy Sheriff pursuant to the execution.

Interfin Securities however says that the loan is non-performing and is in fact owed US$2 million.

In a letter to Zimbabwe Stock Exchange (ZSE) CEO, Emmanuel Munyukwi, dated March 27, 2012, Interfin Securities executive director Rufaro Zengeni denies misappropriating securities belonging to Remo, claiming his company acted as a diligent creditor to recover its debts.

“The allegations by Remo and Mahmed are unfounded and malicious. Interfin Securities did not misappropriate any securities belonging to Remo, it acted as a diligent creditor to recover its debt after the debtors had defaulted on their repayment obligations to Interfin Securities,” reads part of the letter.

In the letter to Munyukwi, Zengeni claims his broking firm –– between 2010 and 2011 –– entered into several separate agreements with Zimslate Quartzite and Remo, which saw Zimslate borrowing US$2,664 million while Remo borrowed US$3,640 million.

The two stockbrokers were slapped with a six-month suspension by the Securities Commission in order to ring-fence the shares in dispute. –– Staff Writer.

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