Fidelity Life still pursuing capital restructure
HARARE, Fidelity Life Assurance has negotiations to restructure its capital structure through issuance of shares by way of a rights offer are still ongoing.
The company in a statement said, “further to the cautionary announcement dated 22 July 2019, and
subsequent updates on 27 August, 23 September, 14 October, 04 November, 25 November, 16 December 2019 and 06 January 2020, the Directors of Fidelity Life Assurance Zimbabwe Limited (“Fidelity” or “the Company”) wish to advise all shareholders and the investing public that the company is still engaged in discussions that involve a potential transaction that may have a material impact on the value of the Company’s shares.The transaction involves the restructuring of the company’s capital structure through the issuance of shares by way of a rights offer.”
The statement noted that further details of the transaction will be provided once discussions have been finalised, therefore, shareholders are advised to exercise caution when trading in the Company’s shares.
The Zimbabwe Stock Exchange “ZSE” listed insurance company focused on the Life business, is set to raise additional capital, as it moves to consolidate its business strategy.
In 2017 the group undertook a major restructuring exercise which into 2019, is still ongoing. The restructuring exercise focuses on returning the business to its core mandate of insurance.
Fidelity sits on a massive land bank known as Langford Estates, which was acquired from CFI a couple of years ago. This land bank could unlock further potential on the property side of the business.