FMHL shareholders further notified of the pending mandatory offer

FMHL shareholders further notified of the pending mandatory offer

Staff Writer

Harare, CBZ Holdings (CBZH) says it is still determining a fair price to complete the transaction in which it is in the process of acquiring a 36,35% stake in First Mutual Holdings (FMHL).

In a cautionary statement, group chief governance officer Rumbidzai Jakanani said CBZH is still in the process of engaging all relevant stakeholders.

“Further to the Notice to Shareholders of FMHL issued by CBZH on October 10, 2023, relating to the acquisition by CBZH of a 36,35 percent shareholding in FMHL, shareholders are advised that CBZH is in the process of engaging all relevant stakeholders and is at the stage of valuing a fair and reasonable price on the Mandatory Offer in accordance with the ZSE Listing Requirements and the Companies and Other Business Entities Act (Chapter 24:31),” she said.

The Competition Tariff Commission (CTC) approved this merger in the fourth quarter of 2022, as the listed financial services provider said it wanted to create a pan-African bank starting with the merger with FMHL.

CBZ is acquiring 36.35 percent of FMHL from NSSA, and according to the terms of the contract, the consideration is a blend of cash and a share swap in a 30/70 ratio. The rationale behind the share swap was to leverage CBZ’s strong share price on the Zimbabwe Stock Exchange and use it as currency for this transaction.

The bank’s management believes this transaction will unlock further value for existing shareholders and allow for more wealth creation.

The acquisition of FMHL is a key part of this process as they have successfully established themselves in other jurisdictions within SADC, and the goal of this merger is to maximize shareholder value and create an important corporate citizen in the process.

The bank also sees the merger as a way to gather the best financial talents in this country under one roof and use those talents to build and develop this nation and become the center of financial transactions in this region.