ZHL still pursuing the elusive USD… in Botswana
ZIMRE Holdings says it is still pursuing the Emeritus International transaction to raise at least $10 million in Botswana to support regional operations.
This is part of the group’s restructuring exercise which commenced in 2016, where the group is targeting to raise a total $30 million through a phased approach.
“Further to the cautionary announcement dated 30 July 2019, shareholders are advised that negotiations for the Emeritus International capital raise are still in progress which, if successfully concluded, the full impact of the capital raise are still being determined, and that this event may have a material effect on the price of the company’s securities.
“Accordingly, shareholders are advised to continue exercising caution when dealing in the company’s securities until a full announcement is made,” ZHL said in a cautionary statement.
ZHL rebranded its reinsurance operations under Emeritus International, registered in Botswana, targeting to list on the Botswana Stock Exchange (BSE).
The group’s regional operations are in Malawi, Mozambique, Botswana and Zambia. For FY18, the group indicated that low capital bases in regional operations and limited business retention slowed down the group’s growth potential.
According to chairman, Benjamin Kumalo, the impact was more pronounced in Zambian and Mozambican reinsurance units which were not able to absorb existing market insurance capacity.
Kumalo said the group injected $1,5 million into the region to enhance capacity and the impact of such will be felt in 2019.
