Diversified financial services group, Zimre Holdings Limited (ZHL), is offering one share for every 2.78 shares held by Zimre Property Investments (ZPI) minority shareholders as it moves to take over the property concern.
ZHL is targeting the acquisition of 100% in ZPI, culminating in the delisting of the property concern from the Zimbabwe Stock Exchange (ZSE).
The offer opens for acceptance on September 11 and ends at the close of business on October 12, according to a circular to ZPI shareholders released yesterday.
“The ZPI shareholders who accept the offer by the closing date shall receive 1 new ZHL share for every 2.78 shares they hold in ZPI,” reads part of the circular by ZHL.
“The share swap is on the basis of a 30-day Volume Weighted Average Price (VWAP) of ZHL shares of ZWL$0.8388 against a 30-day VWAP of ZPI shares of ZWL$0.2409 cents + 25% premium (ZWL$0.3012) calculated as at May 29.”
According to Companies and Other Business Entities Act, the price that ZHL offers ZPI shareholders should not be less than the weighted average price at which it acquired the ZPI’s shares comprising the control block during the last six months preceding the date of acquisition of the control block.
Prior to 2007, ZPI was wholly owned by ZHL.
It was unbundled and separately listed following a private placement that resulted in ZHL being diluted from 100% to 51%. ZHL was further diluted to 47.6% in 2016.
ZHL has subsequently increased its shareholding through open market purchases.
According to the circular, the acquisition of ZPI, and subsequent delisting will advance the interests of both current ZHL and ZPI minority shareholders through the pursuit of innovative and community changing development projects, the introduction of unique financing models that leverage and sweat the property asset base in a more flexible manner and a business restructuring that will culminate in a delink between the property portfolio and the property management services, among others.