Fidelity Life Assurance survives the Langford Estate dispute
Insurance24
HARARE, Insurer, Fidelity Life Assurance yesterday survived the risk of losing the Langford Estate after CFI Holdings shareholders rejected the resolution at an Emergency General Meeting (EGM).
The EGM followed a requisition by Willoughby’s Investments –which holds more than 10% of CFI, to reverse the disposal of 81% Langford Estates share back to CFI. The Nicholas van Hoogstraten-company argued that resolutions passed in 2015 were illegal hence should be nullified.
The transaction involves a land for debt swap deal which saw FLA assuming CFI’s $18 million debt in the form of $16 million bank debts and settlement of $2 million to other creditors.
Sources privy to the EGM details said the meeting which was not properly constituted after the Zimbabwe Stock Exchange (ZSE) did not authorize the meeting was highly tense at some point with physical confrontations.
But at the end, the resolution failed after majority shareholders voted against it. Fidelity believes that the acquisition of 81% of CFI Holdings’ Langford Estate would strengthen the insurance and property developer’s balance sheet giving it capacity to underwrite more business. In addition to that, the project was to have more than $200 million profit before tax.
Langford Estates comprises of 834 hectares and is expected to yield 11 264 residential stands.
Fidelity had since begun the necessary processes to commence construction of about 11 500 high density residential stands at Langford with an estimated market value of $350 mln.
The project was expected to yield at least 11 264 residential stands, and being a successor to the South View Housing project.
