Investment firm Blackstar Group said it would be fighting Shoprite Holdings Ltd attempt to reverse stock trades undertaken in Zambia. Shoprite is the largest grocery retailer in South Africa while Blackstar is based in Luxembourg.
In a statement today, Blackstar said the grocer had filed proceedings in the High Court of Zambia to undo the stock trades. In April last year, Blackstar said Shoprite had charged its transfer secretary in Zambia for allegedly selling the treasury shares without the retailer's authority. Pending the results of the court case, Shoprite has halted dividends payments to its investors in Zambia.
Blackstar said it would work with the other shareholders in fighting the trade reversal. "Blackstar believes that it has full legal title over its Shoprite shares and will take all steps necessary to preserve and protect value for its shareholders. Blackstar is working with other investors who own Shoprite Zambian shares to resolve the impasse."
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