CTC blocks CBZ’s plan to buy out FMHL minority shareholders

STAFF WRITER
The Competition and Tariff Commission (CTC) has halted CBZ Holdings Limited (CBZHL)’s plan to buy out minority shareholders’ stakes in First Mutual Holdings Limited (FMHL), Business Times can report.
This move was part of CBZHL’s broader strategy to consolidate control of the business after exceeding the ownership threshold set by the Zimbabwe Stock Exchange (ZSE).
This decision follows CBZHL’s acquisition of a 36.35% stake in FMHL last year. According to ZSE listing rules, any entity or individual that acquires at least 35% of a publicly traded company must extend a mandatory offer to the remaining shareholders.
However, in a notice to shareholders, Rumbidzayi Angeline Jakanani, CBZHL’s Group Chief Governance Officer, revealed that the CTC directed the company to abandon its plan to buy out FMHL minority shareholders.
“The CTC has resolved that CBZHL must maintain its 31.22% shareholding in FMHL, which was previously approved by the Commission. In light of this decision, FMHL shareholders are advised that CBZHL will no longer proceed with a mandatory offer to minority shareholders in First Mutual Holdings Limited. No further announcements will be made on this matter,” Jakanani stated.
Despite this development, market observers expect CBZHL and FMHL to leverage their combined strengths to establish a strong balance sheet, enabling them to emerge as dominant players in the market.
The collaboration is anticipated to bolster property and insurance activities while expanding services to a broader customer base by capitalizing on synergies between the two firms.
This move is ultimately aimed at enhancing shareholder value.
CBZHL’s acquisition of a stake in FMHL coincides with widespread speculation that the company is in negotiations to acquire a controlling interest in ZB Financial Holdings Limited. If successful, this acquisition would transform CBZHL into a financial powerhouse capable of attracting significant foreign investment to support national development initiatives.