Masawara Plc to de-list from AIM

Masawara Plc to de-list from AIM

Insurance24 Reporter

HARARE, Masawara PLc is set to de-list from the AIM (London Stock Exchange) following a transaction in which principal shareholder Shingai Mutasa and others now control 90.4% of the Company’s issued share capital.

The transaction is that on 27 December 2017, Oxford Holdings Limited (“OHL“) acquired 50,760,456 ordinary shares of US$0.01 each of the Company (“Ordinary Shares“) for a price of 30 pence per Ordinary Share, with 20 pence per Ordinary Share payable immediately and 10 pence per Ordinary Share to be paid within 12 months.

The current principal shareholder of the Company is FMI Holdings (Private) Limited (“FMI”), which holds 61,163,618 Ordinary Shares. Shingai Mutasa, a Non-Executive Director of the Company, has effective control of both OHL and FMI, and through this common ownership Mr Mutasa and persons closely associated with him now hold a beneficial interest in 111,924,074 Ordinary Shares, representing 90.4 per cent of the Company’s issued ordinary share capital.

Meanwhile, according to the group, Mutasa has notified the Board that he intends to procure a cancellation of the Ordinary Shares from trading on AIM.

“Noting the material lack of liquidity of the Ordinary Shares that will arise as a result of the acquisition by OHL and the substantial cost of maintaining a listing, the Company is of the view that it would be in the best interests of the Company to cancel the admission of the Ordinary Shares to trading on AIM,” read the notice.

The Company intends to post a circular to all shareholders convening a General Meeting of shareholders to vote on the proposed delisting.

The resolution requires the consent of not less than 75 per cent of the votes cast by shareholders. Mutasa will procure that FMI and OHL provide an irrevocable undertaking to vote in favour of the resolution. Cancellation of the Company from trading on AIM is expected to become effective not less than 20 business days following posting of the circular as required under the AIM Rules for Companies.

The circular will also contain a separate letter from Mutasa outlining the future plans for the Company (which include the proposed delisting from AIM).

Masawara Plc is an investment holding company focused on acquiring interests in companies based in Zimbabwe and the Southern African region.

In Zimbabwe, the group’s insurance units include Zimnat Lion, Zimnat Life, Grand Reinsurance and Minerva Risk Advisors Private Limited.  Outside Zimbabwe, the group’s insurance businesses include the Botswana Insurance Company Limited and Lion Assurance Company (Uganda).