FMHL moves to acquire 100% stake in Nicozdiamond as NDI also moves closer to ZSE de-listing
By Insurance24
HARARE, First Mutual Holdings Limited (FMHL) is set to assume 100% ownership of the issued share capital of short term insurer NicozDiamond post a Scheme Meeting to be held end of this month. Consequently, in this eventuality, the listing of NDIL on the Zimbabwe Stock Exchange (ZSE) will be terminated.
Following its acquisition of 80.92% shareholding in NDIL, FMHL proposed to acquire the remaining NDIL shareholding through a Scheme of Arrangement between NDIL and its shareholders in term In terms of Section 191 of the Companies Act (Chapter 24:03).
NDIL has issued an Abridged Circular to NDIL shareholders taking the necessary steps to facilitate the proposed Scheme.
“If the Scheme is implemented, the shareholders registered as at the Scheme Voting Record Date, other than FMHL (“Scheme Participants” or “Scheme Members”), will receive either 10 FMHL ordinary shares for every 43 NDIL ordinary shares held or a cash consideration of US 3.41 cents per each NDIL ordinary share Scheme Consideration held, and NDIL will become a wholly owned subsidiary of FMHL.
“The Offer is based on the share trading prices of NDIL and FMHL on the Offer Pricing Record Date, being the NDIL Cautionary Announcement Publication Date of 23 April 2018 when the share prices of NDIL and FMHL traded at US 3.1 cents and US 16 cents respectively,” read part of the Circular.
If the Scheme becomes operative, each Scheme Participant (whether they voted in favour of the Scheme or not), will be deemed to have sold their Scheme Shares to FMHL and will no longer be a shareholder of NDIL.
The benefits of the Scheme include the consideration in the form of FMHL ordinary shares allows Shareholders an opportunity to remain with tradable securities in an enlarged and diversified group; and
Additionally, the 100% ownership of NDIL by FMHL allows FMHL to merge NDIL with Tristarinsurance bringing benefits such as enlarged clientele base and increased new business underwriting capacity.
“If realized, these benefits will accrue to both current FMHL shareholders and the Scheme Shareholders who will elect to receive shares in FMHL,” said Nicoz.
Meanwhile, trading was very active with turnover spiking to close at $6.27 million. Decent trades were posted in BATZ, DZLH, Econet, Hippo, OKZim and OM.
The All Share Index closed the day 1.47 points firmer and the Industrial Index added 4.96 points as demand for stocks surged. The Top Ten Index added 1.99 points and the Mining Index closed 0.20 points in the positive.
