Senwes to list
NEWS
•••
on ZAR X
THE SENWES GROUP (SENWES AND ITS HOLDING
COMPANY, SENWESBEL
LIMITED, (COLLECTIVELY
THE “COMPANIES”)
ANNOUNCED 20 JULY
2016 THAT IT WILL MIGRATE ITS OTC SHARE
TRADING TO A LICENCED
ENVIRONMENT WITH ZAR
X AS REQUIRED BY THE
FINANCIAL MARKETS ACT,
2012 (“FMA”).
S
ince 2006 Senwes provided
an Over the Counter Trading
Desk (“OTC”) as an Authorised
Financial Services Provider in
terms of the FAIS legislation for
the trading of both the Companies’ shares.
When the Financial Markets
Act (FMA) was promulgated in
2013 there was uncertainty about
the provisions and the application
on OTC’s and the FSB was engaged immediately to attempt to
provide clarification. The FSB provided the Companies with a temporary exemption from the FMA
in August 2013 on condition that
the FAIS legislation still be com-
plied with pending clarification of
the position in terms of the FMA.
Subsequently during May
2014, the Financial Services Board
(FSB) issued a draft directive in
terms of the Financial Markets Act
indicating that all “self-regulating”
OTC’s such as the Senwes trading
desk should apply for licencing
unless it was a “single counter
exchange”. This directive was
subsequently elucidated and the
FSB issued a 2nd final directive to
OTC’s dated 11 July 2014, where
it’s was clear the Companies had to
apply for exemption, apply to be
licenced as an exchange, or migrate
to a provider that is licenced. The
FSB made it clear that all exchanges trading in shares (with the “public”) be regulated under the FMA.
Following the conditional
approval of ZAR X as a licenced
exchange, the Companies’ boards
resolved that the Companies will
migrate the shares trading of the
Group to this bourse effective as
from 30 September 2016, subject
to ZAR X being granted its full
exchange licence. Shareholders will
be provided with a comprehensive
listing circular during September
explaining the procedure and
structure of this new trading platform. ZAR X caters for easy low
risk share trading in a regulated
environment. Senwes will still act
as the transfer secretary and main
broker towards this exchange,
which is being supported by
STRATE and Computershare. The
whole process is electronic and is
being operated within the dematerialised environment.
“We are very excited to be
part of a process of breaking new
ground together with ZAR X and
its new initiatives,” Senwes CEO,
Francois Strydom said. The ZAR
X team and its founders, have vast
experience in dealing with trading
platforms and we are comfortable
that our shareholders will still
enjoy investor protection, whilst
dealing on a platform within
the FMA realm as envisaged by
the FSB. Etienne Nel CEO and
co-founder of ZAR X commented
“the Senwes Group continue to
show why it is the leader in the
Agri business space by listing on
ZAR X and we are delighted that
they have decided to do so”.
For purposes of the migration
shareholders are advised that the
Group’s share registers will be
closed and no transfers will be
allowed during the period 1 September to 30 September 2016 to
ensure a smooth transition to this
licenced environment. Official
notice in this regard will be given
shortly.
Queries may be referred to the
Group Company Secretary and
General Legal Counsel, Elmarie
Joynt at [email protected]
or tel nr: (018) 464 7104.
SENWES Scenario • AUG/SEP 2016
15