CBZ accelerates minority shareholders buyout.
BUSINESS REPORTER
Financial services group, CBZ Holdings Limited (CBZHL) is accelerating a buyout of minority shareholders from First Mutual Holdings Limited (FMHL) in an effort to take control of the business after exceeding a threshold set by the Zimbabwe Stock Exchange (ZSE),Business Times can report.
The development follows CBZHL’s acquisition of 36.35% of FMHL last year.
“Shareholders are advised that CBZHL is in the process of engaging all relevant stakeholders and is at the stage of valuing a fair and reasonable price on mandatory offer in accordance with ZSE Listing Requirements and the Companies and Other Business Entities Act (Chapter 24:31),” CBZH’s Group Chief Governance Officer, Rumbidzayi Jakanani said yesterday.
When an individual or group buys at least a 35% share in a listed firm, the ZSE mandates that an offer be made to other shareholders on terms decided upon with the main exchange.
With the purchase of FMHL, CBZHL now owns 36.35% of the company overall.
CBZ and FMHL would combine their strengths in their formidable merger to create a strong balance sheet that would position them as dominant players in the market.
By taking advantage of the synergies between the two businesses, the combined company should be able to grow its property and insurance operations and provide services to a wider range of clients, ultimately creating a larger value.
The acquisition of a stake in FHML comes as CBZHL is already in the process of buying controlling stake in ZB Financial Holdings Limited, as it seeks to become a financial services behemoth to attract foreign investment to support national development projects.
