NDAMU SANDU
The National Social Security Authority (NSSA) is seeking foreign currency proceeds in the disposal of its stakes in First Mutual Holdings and Turnall as it moves to preserve and enhance value for pensioners, Business Times can report.
In January, NSSA said it was disposing of 31.22% stake in First Mutual to be compliant with stock exchange regulations. NSSA said it was offloading its 32.55% shareholding in roofing and building materials manufacturer Turnall and was eyeing a strategic alliance for National Building Society (NBS). The suitors had up to January to express interest.
Tendai Mutseyekwa, NSSA’s deputy director Marketing and Communications told Business Times seven suitors have expressed interest in the 31.22% stake. The stake has a current market price of around ZWL$ 3.8bn, Mutseyekwa said.
“However due to the strategic nature of the investments, the Authority is seeking the best execution price, preferably in foreign currency in the interest of preserving and enhancing value for our members and stakeholders who include pensioners and other vulnerable groups,” Mutseyekwa said.
He said six suitors have expressed interest in the Turnall’s stake and have been “provided with bidding documents and are now preparing their bids which will be submitted by the second week of April 2021”.
“To ensure that the process is competitive, we are unable to share the actual identities of the parties as this may compromise the bidding process suffice to say that the responses came from both local and foreign investors,” Mutseyekwa said.
NSSA holds 160m shares being 32.55% stake in Turnall. At current market prices the stake is worth around ZWL$208m.
He could not be drawn to reveal the identities of the suitors as this would compromise the bidding process “suffice to say that the responses came from both local and foreign investors”.
Like the First Mutual stake, NSSA was also seeking the best execution price and particularly interested in preserving value through a forex anchored accommodation, Mutseyekwa said.
The sale of the Turnall and First Mutual stakes is targeted to be completed by end of Q2 2021, he said.
NSSA said it had received expressions of interest from seven suitors in NBS. The interested parties were provided with bidding documents and are now preparing their bids which will be submitted by the second week of April 2021.
NSSA is using the disposal of shareholding to unlock value for contributors and pensioners. It said proceeds from the disposal would be allocated to impact investments and offshore investments.
NSSA is on a strategic refocus in the final leg of its consolidation exercise. In the initial phase, NSSA merged NicozDiamond into FMHL and disposed of its stake in Fidelity Life and Zimre Property Investments in a share swap deal with Zimre Holdings Limited.
The second phase saw NSSA offloading its stakes in First Capital Bank and ZB Financial Holdings Limited.
In December, NSSA disposed of its 37.79% ZB Financial Holdings shareholding in a share swap which saw the authority getting CBZ shares worth ZW$640m.
As part of the transaction, NSSA also received US$11,646,889 after factoring transaction costs.
