CBZ to acquire 32pc stake in First Mutual
CBZ Holdings is set to acquire a 31,22 percent shareholding in First Mutual Holdings (FMHL) held by the National Social Security Authority (NSSA), following successful negotiations.
CBZ, through successive cautionary statements, has been advising shareholders to exercise caution when dealing with the company’s securities, pending conclusion of the negotiations.
“ . . . following the conclusion of negotiations, the Company has now executed an agreement for the acquisition of 31,22 percent shareholding in First Mutual Holdings from the National Social Security Authority,” Rumbidzayi Jakanani, the group’s legal corporate secretary said in a statement.
She said the agreement is subject to several conditions precedent that if fulfilled and the transaction is successfully concluded, may have a material effect on the price of the Company’s securities.
“Accordingly, shareholders are advised to continue exercising caution when dealing in the Company’s securities until a full announcement is made,” she said.
Earlier this year, NSSA announced its intention to reduce its stake in First Mutual Holdings Limited (FMHL) from 66,22 percent to 35 percent through offloading up to 31,22 percent to a strategic partner. This move will see NSSA in compliance with regulatory requirements, while bringing in a strategic investor with solid financial resources, synergistic, technical and strategic benefits to enhance the growth prospects of the First Mutual Group.
In 2020, the market also witnessed the acquisition of ZB Bank by CBZ holdings. The transaction was a result of NSSA disposing of its 37,79 percent ZB Financial Holdings (ZBFH) shareholding in exchange of CBZ shares worth $640 million, (US$7,8 million).
For the 50 percent consideration, NSSA received 14 341 million new shares, valued at $640 041 800 in CBZ representing 2,15 percent stake, while for the 50 percent cash transaction, NSSA received US$11 646 889 after factoring transaction costs.
The transaction saw NSSA, which also has investments in FBC (35 percent) and NBS (100 percent), increasing its shareholding by 2,15 percent in CBZ where it already has 16 percent shareholding.
According to NSSA, the decision to dispose of ZB Bank shares was on the back of inconsistent dividends and an underperforming share price resulting in the investment company freeing its funds so as to preserve value for pensioners.
Meanwhile, CBZ recently announced that the group’s financials for the period to June 30, 2021 will be published by no later than November 12, 2021.
But according to a trading update for the March 2021 quarter, CBZ Holdings’ profit rose by more than half to $1,65 billion from $1,064 billion earned in prior comparative period, as it accelerated its digitisation drive that allowed it to operate during the Covid-19 induced lockdown.
During the period under review, CBZ Bank, which is the biggest bank by market value saw a 23 percent increase in inflation-adjusted revenue to $4,935 billion, significantly ahead of $3,996 billion recorded in the first quarter of the previous year.
Customer deposits showed very good growth of 14 percent to close the period under review at $77 126 billion, ahead of $67 668 billion recorded in the same period last year.
Total advances increased by 133 percent to $40 432 billion compared to $17 358 billion in the first quarter of the previous year.-ebusinessweekly.co.zw
