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BH24 Reporter
HARARE – First Mutual Holdings Limited (FMHL) has made offer to buy out the remaining minority shareholders of NicozDiamond Insurance Limited following acquiring 80,92 percent of the latter’s issued shareholders.
The transaction will be done by way of a scheme of arrangement in terms of the Companies Act.
According to the Zimbabwe Stock Exchange listing requirements, FMHL is supposed to make a mandatory offer to NicozDiamond minority shareholders.
“Shareholders and investors are hereby advised that NicozDiamond Insurance Limited has received notification from First Mutual Holdings Limited of its intention to make mandatory offer (the transaction) to buy out the remaining minorities in NDIL by way of a scheme of arrangement in terms of section 191 of the Companies Act.
“FMHL has an obligation in terms of the ZSE listing requirements to make a mandatory offer to NDIL minorities following acquisition of 80, 92 percent of the issued shares in NDIL,” said NicozDiamond.
In line with the FMHL notice, NicozDiamond has commenced the necessary processes to facilitate the scheme of arrangement.
The proposed scheme meeting will be announced after regulatory and legal clearances have been procured.
Last year, FMHL acquired NicozDiamond shares after the National Social Security Authority (NSSA) disposed of its controlling stake in insurance firm under nine months after boosting its equity in the company.
Following the acquisition, NicozDiamond will merge with FMHL’s subsidiary Tristarinsurance Company Limited before NicozDiamond delists from the ZSE.
NDIL is mainly into short term insurance sector in Zimbabwe, Mozambique and Malawi through associate companies in which it has management contracts.
Online Reporter