CBZ Holdings granted 90-day extension to complete First Mutual offer
ZIMBABWE Stock Exchange-listed financial services provider, CBZ Holdings has been granted a further 90-day extension within which to make the Mandatory Offer to the remaining shareholders of First Mutual Holdings Limited (FMHL).
CBZHL has engaged the Zimbabwe Stock Exchange (ZSE) for a further extension and as per the ZSE requirements, CBZHL cannot proceed with the Mandatory Offer until it has secured approval from the Competition and Tariff Commission (CTC).
The extension offer is with effect from 10 July 2024. The ZSE will proceed to review the Offer once the CTC approval has been secured. “At this stage the CTC has been notified of the Mandatory Offer and remains in the process of reviewing the transaction in terms of the Competition Act (Chapter 14:28).
The ZSE has been advised of the current status and has therefore granted CBZHL a dispensation for a further 90-day extension within which to make the Mandatory Offer starting from July 10, 2024. The ZSE will proceed to review the Offer once the CTC approval has been secured,” CBZ said in a shareholder notice.
CBZ says the transaction was designed to create a pan-African bank starting with the merger with FMHL. CBZ acquired 31,22 percent of FMHL from Nssa and according to the terms of the contract, the consideration is a blend of cash and a share swap under a 30/70 ratio.
The rationale behind the share swap was to leverage CBZ’s strong share price on the ZSE and use it as currency for this transaction. The bank’s management believes the transaction will unlock further value for existing shareholders and allow for more wealth creation.
CBZ also has the desire to become a regional player and the acquisition of FMHL is a key part of this process as the group has successfully established itself in other jurisdictions within Sadc and the goal of this merger is to maximise shareholder value.
The bank also sees the merger as a way to gather the best financial talents in this country under one roof and use them to build and develop Zimbabwe as well as make the country a regional financial hub.-chronicle
