BSE lifts Olympia�s four-year suspension

Mbongeni Mguni | Friday December 15, 2017 15:26

Yesterday, BSE head of market development, Thapelo Moribame told BusinessWeek that the four-year suspension had been lifted after the Kenyan majority-owned group complied with the bourse’s listing rules.

“The BSE Main Committee has lifted the Olympia suspension as of the 15th December 2017 when the company stocks will start trading,” she said.

A number of Olympia’s 12 years on the BSE have been characterised by troubles that have affected its listing, including the closure of a subsidiary, Plush Ltd, due to financial stress. Olympia, which owns Kalahari Floor Tiles and Gaborone Enterprises, was suspended in October 2013, its third suspension from the BSE after similar action was taken in August of that year and August 2009 for similar listing rules violations.

At the time, the BSE’s Main Committee was to decide on whether to delist the group or prolong its suspension.

Although the group’s directors locally and in Kenya, had dropped a curtain of silence at the time, reports from Nairobi in late 2013 had suggested Olympia’s parent group planned to buy out local minority BSE shareholders, while offering the larger equity holders a swap for shares in the holding group.

The plans would have resulted in a BSE delisting for Olympia.

Olympia’s return from suspension was heralded by a flood of financial statements on the BSE’s news service, including Annual Reports for 2014 and 2016, as well as results for the intervening periods up to June 2017, the latest ‘reportable’ period. The results to December 31, 2016, show that Olympia’s after-tax profits declined marginally year on year to P2.2 million from P2.8 million on lower revenues. The interim results for the period ended June 30, 2016 show profits of P224,500.

The financial documents recently filed on the BSE suggest the improvement in Olympia’s fortunes was driven in part by an unsecured loan from the Kenyan parent with no fixed terms of repayment, but a 13% per annum interest rate.

Auditors raised concern that by December 31, 2016, the group’s liabilities exceeded assets by P15.2 million.

“The ability of the company to continue as a going concern is dependent on the continued financial support of the shareholders and the parent company,” the auditors noted.

From a listing price of 80 thebe in October 2005, Olympia was trading at 20 thebe when it was suspended in October 2013. The company has 28.6 million shares listed on the BSE.