Published: 16 April 2014

Zimre Holdings Ltd is considering offloading its stake in Malawi-based United General Insurance Company (UGI), to its subsidiary NicozDiamond.

Sources close to the deal said it was only logical to sell to NicozDiamond since it has been managing UGI on behalf of Zimre Holding. Zimre holds a 74% stake in the Malawian insurer.

Another source said that NicozDiamond would be more suited to owning the business as both are in the same line of business.

NicozDiamond has already indicated its intention to expand into the region after it recently ventured into Mozambique.

NicozDiamond and Zimre Holdings Limited issued joint cautionary statements advising shareholders that they were in negotiations for a disposal and acquisition of a business respectively, which if successful will impact on the value of their shares.
- The herald

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