CBZH to make mandatory offer to FMHL shareholders

FIRST Mutual Holdings Limited (FMHL) has notified its shareholders that CBZ Holdings Limited (CBZHL) which intends to expand its footprint in the financial sector is preparing to publish a detailed circular with specific details of its mandatory offer.

In 2021, CBZ signed a share purchase agreement with the National Social Security Authority (NSSA) to acquire 226,997,219 FMHL shares that were then held by the National Social Security Authority (NSSA).

In another update last year, FMHL shareholders were advised that the acquisition had become unconditional and had been completed.

In accordance with the Zimbabwe Stock Exchange Listing Requirements and the Companies and Other Business Entities Act (Chapter 24:31), CBZHL is required to make a mandatory offer to all remaining FMHL shareholders.

CBZ is in the process of acquiring 31,22 percent of First Mutual Holdings from NSSA.

CBZHL operates within four main clusters, namely the banking cluster, insurance cluster, investment cluster and agro-insurance cluster while

FMHL has diverse interests in Insurance, Funeral Services and Microfinance.

In a notice to shareholders, First Mutual company secretary Sheila Lorimer said “On 26 October 2021, CBZ Holdings Limited (CBZHL) signed a share purchase agreement with the National Social Security Authority (NSSA) to acquire 226,997,219 First Mutual Holdings Limited (“FMHL”) shares that were then held by NSSA.

“In an announcement dated 10 October 2023 by CBZHL to FMHL shareholders, FMHL shareholders were advised that the above-mentioned acquisition had become unconditional and had been completed.”

“In their announcement, CBZHL stated that, in accordance with the Zimbabwe Stock Exchange Listing Requirements and the Companies and Other Business Entities Act (Chapter 24:31), CBZHL is required to make a mandatory offer to all remaining FMHL shareholders,” she added.

To that end, FMHL has since advised shareholders that CBZHL is preparing to publish a detailed circular with specific details of the offer.

“As this may have a material effect on the price of the company’s securities, shareholders are advised to exercise caution when dealing in the company’s securities pending publication of the CBZHL offer to FMHL minorities,” she said.-chronicle