NicozDiamond to de-list from Zimbabwe Stock Exchange
Business Writer
HARARE – NICOZDIAMOND Insurance Company Limited (NDIL), one of the country’s leading short-term insurance companies, will be delisting from the Zimbabwe Stock Exchange (ZSE) in August if majority shareholders increase their shareholding to 100 percent.
First Mutual Holdings Limited (FMHL), which holds a 80,92 percent shareholding is set to increase its shareholding to 100 percent after it put an offer to buy the remaining 19,08 percent shareholding held by the minority through a scheme of arrangement.
“The Scheme is implemented following a notification by FMHL to NDIL of its intent to buy out the remaining minority shareholders in NDIL. FMHL is an 80,92 percent shareholder in NDIL hence exceeds the 70 percent maximum shareholding to be held by non-public shareholders in terms of ZSE Listing requirements,” NicozDiamond said in notice to shareholders.
NDIL added: “Termination of listing of the NDIL shares on the ZSE (is set for) Monday August 6 2018.”
The delisting of NDIL’s shares from trading on the ZSE is, however, subject to approval of the proposed scheme of arrangement before the end of this month and a Court hearing to sanction the scheme, which is scheduled for July 18 2018.
The ZSE listing rules 4.22 and 4.25 (d) does not allow the current shareholding structure at NicozDiamond Insurance Limited, hence delisting of the company in terms of rule 1.10E.
NicozDiamond said the 100 percent ownership of NDIL by FMHL allows FMHL to merge NDIL with TristaInsurance, bringing benefits such as enlarged clientele base and increased new business underwriting capacity.
In its financial results for the year to December 31 2017, NDIL , reported a 41,97 percentage growth in profit after tax to $2,448 million from $1,725 million reported in prior year.
Revenue for the reviewed period stood at $20,641 million compared to $20,025 million posted in prior year.
NicozDiamond Insurance was born out of a merger between National Insurance Company of Zimbabwe and Diamond Insurance Company in 2002 and listed on the ZSE.
It embarked on regional expansion drive and four years ago, the company established Diamond Seguros in Mozambique. It also acquired UGI Malawi in 2015.
Grace Muradzikwa, the NDIL chief executive officer said regional investments in Malawi and Mozambique rebounded to profitability during 2017.
Their meaningful performance, she however said continued to be dragged by the capital levels at their disposal.
