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THE National Social Security Authority (NSSA) is set to complete a plan to buy out minorities in the country’s largest short term insurer, NicozDiamond.
This comes after the pension fund increased its shareholding in NicozDiamond to 44,9 percent as of November last year.
ZSE listing rules maintain that an investor who acquires a shareholding exceeding 35 percent in a company should make a mandatory offer to minority shareholders.
According to a circular to shareholders published by NicozDiamond on Monday, NSSA plans to commence the mandatory offer to buy out minorities on April 3, 2017.
The offer will be for a cash consideration of 2,75 cents per share. NicozDiamond said NSSA will purchase the minority shares with its internal funds at a total consideration of just over $8,5 million.
“The offerer are using their own funds to settle all obligations arising from the offer. A letter of commitment has been provided by NSSA principal bankers for funding equivalent to the possible total value of the mandatory offer being $8 595 914,” reads part of the circular.
The mandatory offer is at the same price that NSSA acquired a 15,7 percent stake late last year. The pension fund manager upped its shareholding in NicozDiamond last November after acquiring 88,9 million shares, which translated to 15,7 percent of the short-term insurer’s issued share capital.
The shares were bought at 2,75 cents per share. Meanwhile, NSSA intends to maintain the Zimbabwe Stock Exchange-listing of the company subject to meeting ZSE listings requirements.
The offer opens on April 3 and closes April 24; and results of the offer will be published on April 28.
Nicoz Diamond Zimbabwe recently reported 41 percent dip in net profit to $959 798 in the full year to December 31, 2016 from $1, 6 million in the previous year. — BH24
Online Reporter