Staff Writer
First Mutual Holdings Limited (FMHL) is considering a buyout of minority shareholders in First Mutual Properties Limited as part of plans to delist the property firm from the Zimbabwe Stock Exchange.
In a cautionary statement, FMHL said it was currently evaluating and holding discussions on a possible offer to acquire shares held by minority investors in FMP ahead of a proposed voluntary delisting.
The group said the outcome of the discussions could materially affect the price of its securities, prompting it to urge shareholders and the investing public to exercise caution when trading in its stock until a full announcement is made.
“The Board of Directors of the Company wishes to advise shareholders and the investing public that the Company is currently engaged in evaluations and/or discussions regarding making an offer to acquire shares held by minority shareholders of First Mutual Properties Limited ahead of the proposed voluntary delisting,” FMHL said.
The move signals a possible restructuring within the First Mutual group, with the parent company seeking to consolidate full ownership of its property unit.
FMP separately confirmed that it was engaged in negotiations and evaluating a potential transaction that could result in its exit from the local bourse.
The company said the discussions were still at an early stage and could have a bearing on the value of its securities.
FMP, formerly known as Pearl Properties, is one of Zimbabwe’s established real estate firms, with interests in the development and management of commercial properties in major urban centres.
A successful buyout would allow FMHL to take full control of the property business and could give the group greater flexibility in capital allocation, strategic decision-making and long-term property development planning.
However, the transaction remains subject to regulatory processes, shareholder approvals and final terms, which are yet to be disclosed.
