Stock Exchange of Mauritius suspends share dealing in realty Le Meritt Holdings
The suspension of dealings in the shares of LMH on the official market was decided further to the financials published by LMH, which have shown significant departures from the forecasts/targets as earlier presented to the public in the listing particulars. (Image: Le Meritt)
Mauritius’ property developer, Le Meritt Holdings (LMH) shares have been suspended from the stock exchange with immediate effect due to insufficient information on the initiatives undertaken by LMH to enable investors to make informed investment decision.
The Stock Exchange of Mauritius (SEM) informed LMH shareholders and investors in general that this decision has been taken with the approval of the Listing Executive Committee after market close on Wednesday July 23, 2014.
The suspension of dealings in the shares of LMH on the official market was decided further to the financials published by LMH, which have shown significant departures from the forecasts/targets as earlier presented to the public in the listing particulars.
Hence, upon a request of the SEM, the LMH had to explain the reasons for the significant underachievement of financials through a letter to its shareholders and a communiqué on April 8, 2014.
In its communiqué, LMH outlined initiatives it planned to undertake to redress its situation and keep the market informed of any progress achieved on a regular basis as and when the quarterly results of the company were published.
For instance, some such initiatives consisted of accelerating construction works on-site with an agreement with the Beijing Construction Engineering Group whereby the latter has secured financing of USD 30 million through China Export and Credit Insurance Corporation to complete the construction of Le Meritt ELIPSIS apartment complex.
Additionally, LMH reinforced its management team through the appointment of Chief Operating Officer David Boyce, who has 20 years of general management experience in property development and investment, facilities management, real estate, building services and construction sector.
Later, on May 12, 2014, LMH published merely an abridged financial statement for the quarter ended 31 March 2014 and failed to provide a thorough market update on its state of affairs.
Even after subsequent meetings held between SEM and LMH, the company repeatedly failed to provide the market with appropriate information as requested by SEM.
According to LMH’s financial statement, the revenue of the property developer decreased by 5.3% to Rs 137.69 million for the three months from January to March 2014 while its profit before tax amounted to Rs 1.07 million for the similar period, representing a decrease of 97.9% compared to the corresponding period of 2013.
SEM mentioned that the suspension of dealings in the shares of LMH will be maintained until the company provides the market with complete and updated information on the status of its operations, its financial situation and initiatives that it plans to undertake, going forward.