adminCBZ Holdings intends to buy back over 7,7 million shares from close to 10 000 of the group’s minority shareholders through a facility in which the stockholders sell the stock at no cost. Under the Nil Cost Dealing Facility (NCDF), the financial services giant is targeting a total of 9 888 of its shareholders who hold between one and 5 000 shares to offer them for sale.
“The NCDF is not a compulsory invitation to sell CBZH shares but an offer which will enable willing eligible shareholders to make a choice in which either to accept the offer or keep their shareholding,” CBZH said.
“It gives eligible shareholders an opportunity to sell all of their shareholding in CBZH free of all dealing costs and commissions which are typically disproportionate for holding of ordinary shares of less than 5 000 shares.”
But in terms of the authority granted to CBZH by its shareholders at its last annual general meeting, the financial group will not acquire shares exceeding 10 percent of the group’s ordinary shares.
CBZ said the acquired shares would be used for treasury purposes.
Buybacks not only reduce the number of shares on the market but also tend to improve the share price.
The group said the shares would be bought at a price not lower than its nominal value and not greater or lower than five percent of weighted average trading price.
CBZH’s share is currently trading at 14,5 cents on the Zimbabwe Stock Exchange.
At the end of December 2012, CBZH had a total of 10 963 shareholders, holding 684 144 546 shares. – New Ziana.
Online Reporter
derick.khumalo