NicozDiamond Insurance to merge with Tristarinsurance as FMH seek to raise $17.25 mln
Insurance24 reporter
HARARE, First Mutual Holdings will raise $17.25 million through a renounceable rights offer with the proceeds earmarked for the proposed acquisition 80.92% of the entire issued share capital of NicozDiamond Insurance Limited.
According to a circular published, both transactions will require shareholder approval at an EGM to be held end of this month.
Terms and conditions of the offer is that FML proposes to raise $17.25 million by way of a renounceable offer of 210,371,395 new FML shares with a nominal value of $0.001 at a ratio 44 new FMHL ordinary shares with a nominal value of $0.001 per share for every 100 FMHL ordinary shares with a nominal value of $0.001 per share held as of the FMHL Rights Offer Record date at price of 8.20 cents per FMHL ordinary share. The rights offer is underwritten 90% by NSSA and 10% by LHG.
NSSA is the majority and controlling shareholder of both FMHL and NDL and the proposed NDL acquisition will result in the merging of some units.
According to the circular, subsequent to the proposed transaction, FHH is also proposing to merge the operations NicozDiamond and Tristarinsurance Company who are both short term insurers into a single short term insurance entity.
“The mechanism of the proposed merger will depend on FMHLs ultimate shareholding in NDIL and the process is expected to take up to 24 months to complete.”
As at 31 July 2017, Nicoz had a market capitalisation of $17.7 mln, price to book value of 0.98x and total assets of $41.2 million as at December 2016.
