Nicoz minorities approve FMH takeover

Taurai Mangudhla

HARARE – Nicoz Diamond Insurance Limited (NDIL) minorities this morning unanimously approved a scheme of arrangement in which they will either receive ten First Mutual Holdings (FMH) shares for every 43 of their shares held or get paid 3,41 cents per share to complete a transaction which will see NDIL becoming a wholly owned FMHL subsidiary.

The scheme meeting was held at the NDIL’s  Samora Machel offices and attended by both NDIL and FMH executives.

FML acquired 80,92% of NDIL leaving the minority stake, 19%, now in question.

On completion of the transaction, FMH will own 100% of NDIL and subsequently apply for voluntary delisting on the Zimbabwe Stock Exchange.

Thirteen minorities voted for the scheme with no objections or abstentions.

However, questions were raised about the safety of minorities who opt to get shares in FMH.

“We will continue to perform and ensure we stick to our current dividend policy with enough cover for the new minorities,” FMH CEO Douglas Hoto said in response during the meeting chaired by Retired Justice Moses Chinengo.

Hoto assured the NDIL minorities who opt for shares in FMH that listing rules, coupled with a good culture at FMH will indeed protect their interests.

Indications are that the majority will opt for shares to preserve value at a time the local dollar is weakening.

NDIL will be merged with FMH’s TristarInsurance with a view to bring benefits such as a larger clientele, increased new business and growth in underwriting capacity.

An application to sanction the scheme will be made on July 18. Scheme members may oppose the scheme at this date. If unconditionally sanctioned, on the day, then an order registering the scheme will be issued by the Registrar of the High Court.

A court order will be published July 27. On August 1, the order sanctioning the scheme and operative date is expected to be registered by the Registrar of Companies. If unconditionally sanctioned, on the day, then an order registering the scheme will be issued by the Registrar of the High Court.

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