ZHL / NSSA still engaged on NicozDiamond’s stake
Insurance24 Reporter
HARARE, Zimre Holdings Limited (ZHL) says negotiations over the disposal of certain assets, that include a 30.03% stake in short term insurer Nicoz Diamond are ongoing.
Information is that the National Social Security’s Authority (NSSA) is the prospective buyer of the ZHL shares in order to increase its majority stake to 80.92% which it will in turn dispose to First Mutual Holdings (FMHL).
FML shareholders have since approved the Nicoz Diamond take over and are in the process of raising $17 million for the transaction through a renounceable rights offer.
“The Board of Directors of ZimRe Holdings Limited “ZHL” wishes to advise shareholders and the investing public that negotiations over the disposal of certain assets held by the Company referred to in the cautionary statement published on the 16th of August 2017, are ongoing. The proceeds of the disposal shall be utilized to support the company’s new strategic endeavours.
“Accordingly shareholders and the investing public are advised to continue exercising caution when trading on the Company’s shares. The market will be advised of the outcome of the negotiations in due course,” read ZHL’s cautionary.
ZHL holds 30.03% in NicozDiamond with the National Social Security Authority (NSSA) currently being the major shareholder at 50.89% while other shareholders hold the remaining 19.08%.
The group, with interests in insurance, property and agriculture was removed from United States sanctions list on January 12 this year and the company has now embarked on a restructuring exercise for investment portfolio.
ZHL developed a five-year strategy that is mainly targeting to trim non-profitable and non-strategic regional and local operations as well as consolidate operations in markets that are attractive.
Proceeds from the disposed investments are to be invested into other subsidiaries, mainly in Malawi and Mozambique.
