FML shareholders okay NicozDiamond takeover

FML shareholders okay NicozDiamond takeover
Published: 04 September 2017
FIRST Mutual shareholders have approved directors' proposals to the entire issued share capital of Zimbabwe's biggest short term insurer, NicozDiamond.

FML will now acquire from its anchor Shareholder, National Social Security Authority, 47, 424 million of NicozDiamond's issued share capital at a price of 1 new FML ordinary share for every 5 NicozDiamond ordinary shares held by NSSA.

The acquisition of the 47,242 million NicozDiamond shares will give FML, which already held a controlling 50 percent in the short-term insurer, a controlling 80,82 percent of the issued ordinary share capital of the insurance firm.

"Further to the acquisition of up to 80,92 percent of NDIL, the company (FML) will be authorized to make a mandatory offer to the remaining 19,08 percent NDIL shareholders at terms and conditions to be determined by directors in line with prevailing market conditions," said company secretary Mrs Lorimer.

NSSA took control of NicozDiamond in November last year, buying 15,7 percent of the issued share capital of the company previously held by LAG Malta and a foreign investor.

The state pension insurer also acquired part of the stake held by Bruce Campbell who held about 10 percent. It raised its stake to 50,9 percent after eight percent of minority shareholders accepted its mandatory offer made in March this year.

Meanwhile, First Mutual Holdings Limited says a resolution to raise up to $17,25 million through a renounceable rights offer of 210 371 395 new FML shares at a ratio of 44 new FMHL shares of nominal value $0,001 per share for every 100FMHL shares ($0,001) already at a rights offer price of $8,20 per.


- bh24
Tags: FML,

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