CBZ acquires 31,22% FMHL stake

Senior Business Writer

CBZ Holdings, the country’s leading financial products and services provider, on Wednesday finalised the transaction to acquire 31,22 percent of First Mutual Holdings (FMHL) from National Social Security Authority (NSSA).

The bank’s management believes this transaction will unlock further value for existing shareholders and allow for more wealth creation.

CBZ also has a desire to become a regional player.

The acquisition of FMHL is a key part of this process as they have successfully established themselves in other jurisdictions within Sadc and the goal of this merger was to maximise shareholder value and create an important corporate citizen in the process.

The bank also sees the merger as a way to gather the best financial talents in the country under one roof and use those talents to build and develop this nation and become the centre of financial transactions in this region.

“CBZ Holdings Limited and the National Social Security Authority jointly wish to advise all stakeholders that in October 2021, they executed a Share Purchase and Sale Agreement in terms of which NSSA sold to CBZHL 31,22 percent of its shareholding in First Mutual Holdings Limited (FMHL),” reads part of the joint statement released on Wednesday.

“The Transaction was approved by CBZHL Shareholders at an Extraordinary General Meeting held on 31 January 2022.

“All the required approvals have now been obtained and administrative aspects of the Agreement have been concluded and upon transfer of the shares purchased, CBZ Holdings Limited will become a significant shareholder of First Mutual Holdings Limited.”

The bank registered a 959,5 percent growth in historical net profit to $50,18 billion in the quarter to March 2023, compared to the same period last year.

The bank’s return on assets improved from 18,4 percent in the first quarter of 2022 to 23 percent in the same period this year while return on equity improved from 60 percent to 79,7 percent.

Total assets for the period under review at $1,34 trillion, registering a year-on-year growth of 495,83 percent.

Bank deposits increased by 543,24 percent to $970,78 billion in the March 2023 quarter from $150,92 billion in the comparative period last year.