BUSINESS REPORTER
Financial services concern, Zimre Holdings Limited (ZHL), is consolidating its position in key investments as it seeks to become an infrastructure enabler and innovation catalyst.
ZHL announced last week that it would buy out Zimre Property Investment minorities which would lead to the delisting of the property concern from the bourse.
It will also buy 38,224,928 Fidelity Life Assurance of Zimbabwe Limited shares currently held by the National Social Security Authority.
This represents 35.09% shareholding in the life assurer.
If the transaction goes through, ZHL will have a 55.66% stake, paving the way for the financial services group to buy out Fidelity Life minorities and delist the company from the Zimbabwe Stock Exchange.
In a letter to shareholders to approve the transactions at an EGM on September 30, ZHL board chairman Benjamin Kumalo said the changes in economic dynamics in the later years of the economic and financial stability (1999-2018) have set the group to review its approach to overall value enhancement for the benefit of its shareholders and the economy.
The changes, he said, has seen the group divesting from short term insurer, NicozDiamond and the acquisition of a “leaner dynamic short-term insurance operation, Credit Insurance Zimbabwe Limited and the roll out of the Underwriting Management Agency model.
“At this juncture, ZHL intends to be an infrastructure enabler and innovation catalyst evidenced by the sale of Zimre Centre in Harare to fund the construction of Sawanga Mall in Victoria Falls,” Kumalo said.
He said the consolidation of its position is designed to “create a value chain that can efficiently utilise the assets for the benefit of shareholders”.
