CTC approves FMRE acquisition
THE Competition and Tariff Commission (CTC) has approved, without conditions, the proposed acquisition of 29,1% shareholding in First Mutual Reinsurance Holding Limited (FMRE HoldCo) by Aleyo Capital Proprietary Limited.
The Zimbabwe Stock Exchange-listed FMRE is a holding company for First Mutual Group of Companies involved in the provision of reinsurance services for all classes of general insurance and life health insurance.
Aleyo Capital Proprietary Limited is a Botswana-based investment and asset management firm specialising in private equity and mezzanine investments in southern Africa.
Its principal investors are Botswana-based and are involved in the pension fund and institutional investment.
Both firms are in the financial services sector.
CTC approved the transaction last month during its 87th board meeting.
Aleyo is expected to buy the stake for US$5,3 million and the money raised will be utilised to capitalise FMRE Zimbabwe and FMRE Botswana, and to boost the subsidiaries’ solvency, liquidity and other technical considerations to support expansion.
During its 86th board meeting held on March 4 2021, CTC — tasked to oversee competition — approved six acquisitions, including the acquisition of Scanlink, Tredcor, Birmingham and Dagenham property by farming implements manufacturer, Zimplow Holdings.
Zimplow intends to acquire 100% shareholding in Scanlink, Tredcor Zimbabwe trading as TrenTyre, Birmingham Investments and Stand 30001 Dagenham Road, Willowvale township, all these in exchange for a total of 106 199 706 Zimplow shares.
Some of the approved acquisitions include 82,4% shareholding in Interfresh Limited (Interfresh) by Takura Ventures and Takura III (Takura); 99% shareholding in Comair Limited by K2020704995 (SA) Proprietary Limited in South Africa (SA Bidco); 100% issued share capital of THI by ZIMNAT Lion Insurance Company Limited.
CTC also approved the acquisition of the entire issued share capital of the business of Direct Pay Holdings Limited by Network International PLC as well as that of the assets of Mutare Bottling Company (Pvt) Ltd by Delta Beverages (Pvt) Ltd and part of the business of Invicta Holdings Limited by CNH Industrial South Africa Proprietary Limited.
CTC is an autonomous statutory body established in 2001 through the Competition Act [Chapter 14:28].-newsday.co.zw
