IPEC/Industry players commemorate insurance awareness day in Gweru … Nicoz Diamond scheme of arrangement gets shareholder nod 


IPEC/Industry players take insurance awareness to Gweru as Zimbabwe joins rest of world in commemorating Insurance awareness day

By Insurance24 – Statement by Lloyd Gumbo- IPEC Public Relations Officer

HARARE, As the Insurance and Pensions Commission and the insurance industry in Zimbabwe, we join the rest of the world in commemorating the Insurance Awareness Day.

Insurance Awareness Day is observed on the 28th of June annually to remind existing and potential policyholders to review their insurance coverage.

We therefore, urge the public to review their insurance coverage to check whether they are over insured, under insured or not insured at all.

Some policyholders may forget to renew their insurance, which may lead to the policy expiring, it is therefore critical that one checks the status of their insurance if it is up-to-date.

Families can also use this day to discuss about funeral policies to avoid a situation where they end up having one person with multiple funeral policies, when only one insurer can take care of the funeral.

There are various insurance products available in the market that give policyholders financial security in the event that they lose their most valuable assets.

For instance, one can insure their health, car, house, life, crops or livestock, which will help them recover from loss due to damage, illness or death.

In commemorating this day, IPEC together with the industry will host a belated Insurance Awareness Roadshow in Gweru at Mkoba 6 Shops open space this Saturday.

We invite people in Gweru to come to Mkoba 6 Shops on Saturday to learn more about insurance or ask insurance companies any questions they may have about insurance or their policies.


Nicoz Diamond scheme of arrangement gets shareholder nod

HARARE – Nicoz Diamond Insurance Limited (NDIL) shareholders on Thursday approved the proposal by the company for First Mutual Holdings Limited (FMHL) to acquire scheme shares of minority shareholders and become holder of the entire NDIL issued share capital, in exchange for scheme consideration.

After the acquisition of 80.92 percent shareholding in NDIL, FMHL sought to also acquire the remaining shareholding held by minority shareholders. At the meeting, all shareholders voted in favour of the proposal with no abstainers. FMHL was excluded from voting at the scheme meeting.

According to provisions of the transaction, participants will get 10 FMHL ordinary shares for every 43 NDIL ordinary shares or 3.41 cents for every NDIL ordinary share held.

Participants intending to claim scheme consideration will be also required to surrender their documents of title with completed form of acceptance and surrender either by scheme consideration record or when the scheme becomes operative after all conditions precedent are met.

The move will see NDIL applying for voluntary termination of its ZSE listing in line with the local bourse’s rules.

NDIL obtained a Court order in May authorising the scheme meeting of which it was to be passed by 75 percent in value of members present and voting at the meeting, resulting in the scheme circular being published early this month.

By 19 July, the company is now mandated to apply for a second Court order to sanction the scheme, having been approved by the requisite 75 percent majority. The application will be supported by the chairman’s report. Scheme members objecting the scheme will also be required to file affidavits setting out grounds, prior to the Court hearing.

Meanwhile, some minority shareholders at the meeting raised concerns regarding the need for assurance of safety of their shares.

Said another minority shareholder: “We hope that the value will be preserved for us and also the level of excellence we experienced with the current Nicoz Diamond management will continue to be preserved”, to which NDIL financial advisors said they were protected at law.

“In terms of the Act, certainly minorities are protected but I think in terms of the business case, that really is a matter for First Mutual and how they will protect you as the minority,” said the advisors.

FMHL group chief executive Douglas Hoto also weighed in saying that the same listing rules will apply.

“First Mutual Holdings, being a listed company, has the interest of those shareholders who accept the scheme and they will be protected in the usual manner in that all the listing rules that applied to NDIL will still be the same for FMHL.

“We will endeavour to ensure that the performance at First Mutual Holdings continues and the dividend policy that is in place to give value to the shareholders will carry on, to cover the new minority shareholders who come to the company as a result of this scheme. Furthermore, First Mutual Holdings being a much bigger business has synergies from other subsidiary companies which will contribute to enhancing value to the business”, said Hoto.

FMHL intends to merge NDIL with Tristar Insurance to bring benefits such as enlarged clientele base and increased new business underwriting capacity. It is expected that these benefits will accrue to both current FMHL shareholders and the scheme shareholders who will elect to receive shares in FMHL. Financial Express