FMHL receives regulatory approval for NicozDiamond acquisition

FMHL receives regulatory approval for NicozDiamond acquisition


HARARE, First Mutual Holdings (fmhl) says has received regulatory approval for the acquisition of the entire issued share capital of NicozDiamond Insurance, and subsequently the National Social Security Authority (NSSA) has transferred to FMHL 50.89% of the entire issued shares of NDIL.

In an update on transaction to acquire NicozDiamond, FMHL said in consideration for the NDIL stake, the Group has issued and allotted 59,813,383 FMHL shares to NSSA.

“Accordingly,  NDIL will become a subsidiary of FMHL,” said the company.

The group added that NSSA is in the process of procuring an additional 30.03% shareholding in NDIL from a third party who happens to be Zimre Holdings.

“Subject to shareholder and regulatory approvals, NSSA has irrevocably undertaken to acquire and sell these shares to FMHL and the group shall issue and allot 35,291, 087 FMHL shares in consideration for this stake.”

FMHL is now required to make an offer to the remaining minority shareholders in NDIL. At completetion of the transaction, NDIL and Tristar Insurance will be merged.

First Mutual Holdings last month said of the raised $17.52 mln capital through a renounceable rights offer, approximately 17.9% had been set aside for the estimated cash component of the transaction to acquire Nicoz Diamond issued share capital with the balance being utilised for the recapitalisation of the merged short term insurance entities.