CBL Corporation Limited’s (CBL) shares have been suspended by the New Zealand stock exchange regulation (NZXR) due to concerns that not all material information relating to CBL and its ordinary shares is available to the market.
NZXR, in an announcement, said it understands that the FMA and other regulators have raised concerns relating to the completeness and veracity of information that was released to the market by CBL.
“In these circumstances, NZXR is not satisfied that the market would currently be able to trade in CBL on a fully informed basis,” it noted.
CBL has reportedly confirmed to NZXR that it considers it is in full compliance with its continuous disclosure obligations.
“However, while enquiries are ongoing and in the absence of complete information, NZXR considers that suspension of quotation of CBL’s ordinary shares is appropriate for the fair, orderly and transparent operation of the market, and is in the best interests of the market,” it added.
On February 07, CBL updated the market on its amended ratings by A.M. Best. CBL Insurance has had its issuer credit rating downgraded to “bbb+” and its financial strength rating to “B++,” under review with negative implications; and CBL Corporation’s issuer credit rating downgraded to “bb+”, under review with negative implications.
According to NZXR, quotation of CBL’s shares will remain suspended until such time that it is satisfied that:
All material information relating to CBL and its ordinary shares has been released to the market; and
The information is complete and accurate in all respects.
“NZXR considers that the information required to be released to the market will include an announcement regarding the outcome of the independent report commissioned by the Reserve Bank, and an assessment of the implications for CBL of any requirements or recommendations set out in that report,” it added.
The likely duration that the suspension may remain in place is uncertain. NZXR said the investigation is ongoing and that it is unable to comment further at this time.
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