ZHL offer to ZPI minorities successful
ZIMRE Holdings Limited (ZHL) says ZPI’s offer to minorities has been successful, paving pay for finalization of the transaction which will also culminate in the de-listing of ZPI from ZSE.
The Offer, which was announced on 9 September 2020, opened on 11 September 2020 and closed on 16 October 2020.
“The Boards and Management of Zimre Holding Limited (“ZHL”) and Zimre Property Investments Limited (“ZPI”) wish to advise their valued shareholders and members of the public of the successful acceptance of ZHL’s Offer to acquire all the shares in ZPI on a basis of 1 authorised but unissued ZHL Ordinary Share for Every 2.78 ZPI Ordinary Shares Held,” ZHL said in a notice.
The number of ZPI shares held by minority shareholders before the Offer (“target shares”) was at 613,167,547, representing 35.72%.
Number of ZPI shares held by ZHL before the Offer 1,103,499,120 64 which is 28%. The Number of ZPI shares surrendered by minority shareholders in terms of the Offer was 572,376,313, representing 33.34%.
Only 2.38% shares held by minority shareholders after the Offer. ZHL is also in the midst of transactions to acquire a controlling stake in Fidelity Life Assurance.
The group in its half year to June financials said unprecedented disruption to economic activity as a result of Covid 19 created uncertainty for the group’s operations which spans across the region.
ZHL apart from Zimbabwe has other operations in Botswana, Zambia, Mozambique and Malawi and the impact of Covid 19 pandemic was well defined across the regional economies.
“Although there is gradual easing of restrictions, recovery is expected to be extremely slow in some economic sector,” Benedict Kumalo, the group’s chairman said in an update for the group’s half year ended June 30, 2020.
He said in Zimbabwe, hyperinflationary environment exerted pressure on purchasing power and resulted in the need to constantly increase sums insured and rentals and a spike in the cost of insurance claims.
Group total income grew 49 percent to $1,5 billion from $1,02 billion in the same period in 2019 driven by investment property revaluation gains following change of functional currency, growth in insurance revenues of 747 percent and increase in rental revenue of 888 percent.
Total claims and expenses grew 24 percent to $452 million mainly due to the inflationary pressure on claims and operating expenses in the domestic market.