TINASHE MAKICHI
Di v e r s i f i e d financial services group, Zimre H o l d i n g s Limited ZHL)is targeting the acquisition of 100% shareholding in Zimre Property Investments (ZPI) which will see the property concern delisting from the Zimbabwe Stock Exchange.
The transaction is expected to culminate in the voluntary delisting of ZPI shares from the Zimbabwe Stock Exchange (ZSE).
In a joint statement, the two companies said negotiations are ongoing with a full announcement expected once the deal is concluded.
“Shareholders are advised that ZHL and ZPI have entered into negotiations for the acquisition of the entire issued share capital in ZPI. It is intended that, if successful, the Transaction will culminate in the voluntary delisting of ZPI shares from ZSE,” the companies said.
“Accordingly, shareholders are advised to exercise caution when dealing in the securities of ZHL and ZPI until a full announcement is made.”
ZHL which was founded in 1983 operates through subsidiaries to provide solutions for general insurance, health cover, reinsurance, life reassurance, reinsurance brokering and property services for private, commercial and
corporate clients in Zimbabwe and overseas.
Its insurance products range from short-term and wholelife insurance to endowment pensions, medical aid societies and motor, household and
commercial insurance solutions.
The company also has interests in producing a range of animaldrawn implements and in property management.
ZPI was incorporated in 2003 to harness and co-ordinate ZHL’s property development activities, and to manage, maintain, develop and grow the group’s property portfolio. ZPI has since expanded the scope of its business to non-group business, in the private and public sectors.
ZPI is a real estate holding company that offers services which include project management of residential and commercial developments, as
well as management, valuations and sales of residential, commercial and industrial property.
In a trading update for the quarter ended March 31, ZHL said rental income performance for ZPI was on budget on account of the quarterly rental
reviews being implemented, reconfiguration of existing rental space for other uses in line with market demand and move towards turnover based
leases. It said ZPI obtained a waiver to charge for some of its services in hard currencies.
“However, the reduced capacity of tenants to service lease contracts due
to the mounting economic challenges which became more pronounced in March 2020 with the outbreak of the Covid-19 pandemic, resulted
in increases in void space and debtors,” ZHL said.
ZPI swung to a profit of ZWL$181.83m during the year to December 31, 2019, from a loss of ZWL$74.10m incurred in the previous year, aided by
growth in project income.
Total revenue for the year to December 31, 2020, increased by 8% to ZWL$30.12m from ZWL$28.01m achieved in 2018.
Projects income for the year increased 15% to ZWL$12.97m from
ZWL$11.28m achieved in Rental income increased by 1.4% to ZWL$16.08m from ZWL$15.85m in the prior year.
