ZHL terminates negotiations to dispose Nicoz stake

HARARE, Zimre Holdings Limited (ZHL) has mutually terminated negotiations over the disposal of certain assets that included a 30.03% stake in short term insurer Nicoz Diamond.

The group in a statement withdrawal a cautionary said will consider other funding alternatives to pursue its strategic opportunities.

“The Board of ZimRe wishes to advice shareholders and the investing public that negotiations over the disposal of certain assets held by the Company referred to in the Cautionary published on 16th of August 2017 have been curtailed by the ongoing market developments. The Board has mutually terminated the negotiations with parties involved,” said Lovemore Madzinga, the company secretary in a statement.

Information was that the National Social Security’s Authority (NSSA) was 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 had since approved the Nicoz Diamond take over and are in the process of raising $17 million for the transaction through a renounceable rights offer.

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.