Insurance firm, Nicoz Diamond Insurance Limited, (NDIL) says it has received a notification from First Mutual Holdings Limited (FMHL) of its intention to make a mandatory offer to buy out the remaining minorities by scheme of arrangement.
Last year, FMHL received regulatory approval for the acquisition of the entire issued share capital of NicozDiamond Insurance, and subsequently the National Social Security Authority (NSSA) transferred to FMHL 50.89% of the entire issued shares of NDIL. In an update, Nicoz said, pursuant of the notice it had commenced the necessary process to facilitate the proposed scheme of arrangement. “Shareholders and investors are hereby advised that Nicoz Diamond Insurance Limited has received notification from First Mutual Holdings Limited of its intention to make mandatory offer (the transaction) to buy out the remaining minorities in NDIL by way of a scheme of arrangement in terms of section 191 of the Companies Act(chapter 24:03),” said NICOZ.
FMHL has an obligation in terms of the Zimbabwe Stock Exchange listing requirements to make a mandatory offer to NDIL minorities following its acquisition of 80,92% of the issued shares in NDHL. “Pursuant to the aforesaid notice from FMHL ,NDIL has commenced the necessary processes to facilitate the proposed scheme of arrangement .To this end , a circular incorporating a notice convening the proposed scheme meeting will be issued as soon as all the regulatory and legal clearances have been procured,” said NICOZ
The acquisition of 80% stake in NicozDiamond by FMHL will see NicozDiamond merge with FHMLs subsidiary, Tristar Insurance Company Limited (TICL) before it delists from ZSE
