CBZ Holdings extends FMHL mandatory offer period

CBZ Holdings says it is seeking permission from the ZSE to extend the mandatory offer period for the remaining shareholders of First Mutual Holdings (FMHL) as the Competition and Tariff Commission (“CTC”) has not yet finalised its assessment of the transaction.

The group acquired First Mutual Holdings, upon which CBZ believed merging the two operations would achieve scale to compete against larger corporations in Zimbabwe and the region.

CBZ Holdings in January this year made a mandatory offer to all remaining shareholders of First FMHL after surpassing a threshold set by the Zimbabwe Stock Exchange (ZSE).

“Shareholders are advised that CBZHL has engaged the Zimbabwe Stock Exchange for a further extension of the time within which CBZHL ought to make a mandatory offer to the remaining shareholders of FMHL because the Competition and Tariff Commission has not yet finalised its assessment of the transaction.

“At this stage, the CTC has communicated to the ZSE that it expects that its board would have made the final decision on the transaction in terms of the Competition Act (Chapter 14:28) by the end of November 2024.

“The ZSE has therefore granted CBZHL a further dispensation up to 30 November 2024 within which a mandatory offer must be made to the remaining shareholders of FMHL,” reads the statement.

Post the transaction, First Mutual Holdings will delist from the Zimbabwe Stock Exchange.

Prior to the transaction, CBZHL held 3,23 percent shareholding in FMHL through a special purpose vehicle held under PIM Nominees (Pvt) Limited.

It then made a 31,22 percent purchase in FMHL from the latter’s former majority shareholder, the National Social Security Authority (NSSA), which at the time had 65,53 percent shareholding in FMHL.

CBZ has been actively seeking potential acquisitions and alliances in the local and regional markets that align with the group’s growth strategic goals.

The group is a financial services conglomerate in Zimbabwe with subsidiaries in banking, insurance, investments, wealth management, mortgages and retail finance.

In recent years, the group concluded acquisitions and mergers, which are part of the group’s broader efforts to strengthen its market position.-ebisnessweekl