Zimre Holdings exits “for sale” NicozDiamond Insurance
HARARE, Diversified insurer, Zimre Holdings Limited is negotiating sale of its shareholding in short term insurer NicozDiamond as the group seek to divest from the ensuing acquisition of a majority stake in Nicoz by First Mutual Holdings limited.
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%.
Information is that 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 FMHL.
According to a ZHL cautionary, the proceeds of the disposals shall be utilized to support the Company’s new strategic endeavour.
“Zimre Holdings Limited is advising its shareholders that it has begun negotiations over the disposal of certain assets held by the Company. The proceeds of the disposals shall be utilized to support the Company’s new strategic endeavour, therefore shareholders are advised to exercise caution when trading on the company’s shares,” read the statement.
ZHL chief executive, Stanley Kudenga earlier in the year said the Group had developed a clear corporate strategy that moved to position itself as a turnaround case with a very strong portfolio of assets, at the same time moving to create an offshore investment company, which will be based in Botswana, to house regional investments.
He highlighted that the group had come up with a five-year strategy that was 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.
