First Mutual Holdings Limited eyes controlling stake in Nicoz Diamond Insurance
HARARE, First Mutual Holdings Limited is contemplating the acquisition of a controlling stake in a company in the insurance sector, according to a cautionary statement published this morning.
On other hand, Nicoz Diamond Insurance Limited also published a cautionary advising that its major shareholder the National Social Security Authority (NSSA) intends to dispose of its interest in NDIL to another insurance group.
Both transactions are subject to regulatory and shareholder approval. Joining the two announcements, it highly becomes obvious of the contemplated transactions.
“First Mutual Holdings limited is advising its shareholders that the Company is contemplating the acquisition of a controlling interest in a company in the insurance sector, this transaction whose further details will be made available in a circular to be published by the FMHL in due course is subject to shareholder and regulatory approval,” the group said.
FML recently announced that it had suspended searching for a technical investor hence the company was now looking at creating value locally.
The Group had been looking for a strategic partner to improve the business and attract more quality customers in the insurance sector.
Elsewhere, Nicoz Diamond Insurance Limited cautionary statement read, “…is advising its shareholders that it has been informed by its major shareholders of the intention to dispose of its interest in NDIL to another insurance group subject to conditions precedent including regulatory approvals as well as shareholder approval.”
NSSA, last year shored up its equity holding in Nicoz Diamond through the purchase of 56.6 million shares in normal trading on the Zimbabwe Stock Exchange (ZSE).
Following the transaction and a further rights offer, NSSA took its shareholding to 50.9 from 28.15%. It effectively overtook ZHL which previously held a marginally higher shareholding.
