FML to capitalise merged Nicoz and Trista insurance, 17.9% of $17.52 mln reserved for cash component of transaction

FML to capitalise merged Nicoz and Trista insurance, 17.9% of $17.52 mln reserved for cash component of transaction

Insurance24

HARARE, First Mutual Holdings says 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.

Upon completion of a transaction in which FMHL intend to buy up to 80.92% in Nicoz Diamond, the group will merge the short term insurer with its Trista insurance which is also a short term insurer unit.

In an emailed response, FML said balance of the raised capital will also be used to meet FMHL Group funding requirements.

“Most of the capital raised was not for the purchase of NDIL shares as the proposed acquisition of a majority shareholding in NDIL will be achieved through a share swap of NDIL shares for FMHL shares.

“Approximately 17.9% of the capital raise had been set aside for the estimated cash component of the transaction with the balance of the funds being utilised for the recapitalisation of the merged short term insurance entities as well as meeting FMHL Group funding requirements,” it said.

FML added that the application of the Rights Offer proceeds will be finalised once all the regulatory approvals have been obtained.

The transaction is currently awaiting regulatory approvals from regulatory bodies such as the Insurance and Pensions Commissions and the Competitions and Tariff Commission of Zimbabwe.

FML’s acquisition of the 50.89% already held by NSSA will result in FMHL becoming the controlling shareholder in NDIL. The proposed transaction involves the acquisition of up to the entire issued share capital of NDIL under three components i.e. the acquisition of 50.89% held by NSSA, the acquisition of 30.03% to be procured by NSSA and an offer to the remaining NDIL shareholders holding 19.08% in the company.