Mutandagayi bounces back

Mutandagayi bounces back
Published: 14 December 2017
ZB FINANCIAL Holdings Limited chief executive officer Ronald Mutandagayi has bounced back as board chairman of Mashonaland Holdings (Mashold) following the ouster of Michael Mahachi.

ZB is the largest single shareholder in the listed property company.

Mahachi, a board appointee of Nicholas Vingirayi's Transnational Holdings Limited (THL), had been appointed board chairman of the listed property investment and development firm in March this year, replacing Mutandagayi.

Vingirayi has had an fractious relationship with fellow shareholders, ZB Financial Holdings and National Social Security Authority (NSSA), since he won back shareholding in the banking group, which had swallowed up his Intermarket group in 2004, following a lengthy court battle.

The forced marriage between Vingirai and his fellow shareholders broke down after they voted him and his nominees off the ZB board at a charged shareholder meeting and the parties are now in the process of separating their assets.

The Reserve Bank of Zimbabwe (RBZ) has set December 31, 2017 as the deadline for the separation of ZB from Vingirai's old Intermarket.

"The ZB Financial Holdings Limited board resolved to rescind its decision to nominate Messrs Mahachi, Vingirayi and Mike Manyika to the Mashonaland Holdings board. These directors were requested to resign from your board. As at year-end (September 30, 2017), these directors had not resigned. Consequently, I was reinstated as your chairman," Mutandagayi said in a statement last week.

Mahachi, a property developer and Mike Manyika were both THL nominees.

NSSA has a 37,79 percent shareholding in ZB and the fight with Vingirayi had been over board appointments in the group, a contentious dividend payment and his quest for a bigger stake in the financial institution.

Government, which previously held 23,5 percent shareholding, is now a 3,71 percent shareholder after agreeing to cede 19,79 percent to THL following a legal battle that led to a May 31, 2016 agreement between the parties. Old Mutual has a 5,5 percent stake in ZB.

Mahachi had been appointed to the ZB board early this year after THL assumed a 19,79 percent shareholding in the financial services concern as compensation for the loss of Intermarket Holdings (IHL) in 2004.

The Reserve Bank of Zimbabwe (RBZ) had bailed out IHL which was tottering on the brink of collapse during the banking sector crisis in 2004.

The RBZ took over Intermarket before selling it to ZB. Vingirayi, however, fought back and reclaimed his shareholding and forced his way with his nominees into the board of ZB.

Mahachi, Vingirayi and his other nominees were, however, booted out of the ZB board at an annual general meeting (AGM) in May this year.

NSSA spearheaded Vingirayi's dramatic fall from the ZB board at the last AGM.

NSSA and other shareholders were not happy that THL was paid a $658 699 dividend by ZB when the company was not yet a shareholder at the time the dividend was declared. The dividend was made on June 17, 2016 and THL was only registered as a ZB shareholder on February 6, 2017. THL's position was that it was entitled to the dividend payment because its share transfer deal with government took effect on May 31, 2016.

Vingirayi's investment vehicle later demanded an additional 10,9 million ZB shares.
- Fin Gaz
Tags: Mutandagayi,


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