CTC denies CBZ’s First Mutual mandatory offer
CBZ Holdings Limited (CBZHL) has announced it will not proceed with its proposed mandatory offer to minority shareholders of First Mutual Holdings Limited (FMHL), following a decision by the Competition and Tariff Commission (CTC).
The development comes after a regulatory review of CBZHL’s plans to increase its shareholding in FMHL.
In a statement released on October 31, 2024, CBZHL had informed FMHL shareholders of its intention to make a mandatory offer in compliance with the Zimbabwe Stock Exchange Listings Requirements and the Companies and Other Business Entities Act. However, the CTC’s ruling on November 29, 2024 capped CBZHL’s stake in FMHL at 31,22 percent, the level initially approved by the commission.Zimbabwe car imports
The decision effectively blocks CBZHL from acquiring additional shares in FMHL through the proposed mandatory offer. CBZHL currently holds a 31.22 percent stake in FMHL, making it a significant but non-controlling shareholder in the company.
Rurobidzayi Jakanani, CBZHL’s Group Chief Governance Officer, confirmed the development in a notice to shareholders.
“In light of the decision by the CTC, shareholders of FMHL are hereby advised that CBZHL will no longer be proceeding with the mandatory offer to the minority shareholders in First Mutual Holdings Limited. No further announcements will be made in respect of this issue,” she said.
The decision by the CTC highlights the regulator’s cautious approach to maintaining competition and preventing excessive consolidation in Zimbabwe’s financial and insurance sectors.Zimbabwe car imports
CBZHL, one of Zimbabwe’s largest financial institutions, has been actively seeking to expand its influence across various sectors, including insurance, banking, and investment.
FMHL, a leading player in Zimbabwe’s insurance market, has attracted attention due to its diversified portfolio, which includes life insurance, health insurance, and property investments. The initial mandatory offer by CBZHL was seen as a strategic move to consolidate its position in the insurance sector.
The CTC’s ruling, however, signals that regulatory bodies in Zimbabwe are prioritizing market stability and ensuring that dominant players do not stifle competition. For FMHL’s minority shareholders, the decision means the status quo will be maintained, at least for now.Zimbabwe car imports
The announcement concludes a period of uncertainty for FMHL shareholders, who had been awaiting clarity on CBZHL’s intentions. It remains to be seen whether CBZHL will pursue other avenues to strengthen its foothold in FMHL or explore alternative growth strategies.ebsinessweel
