NSSA to reduce RTG stake to below 50% by end of 2025

HARARE – The National Social Security Authority (NSSA) says it will reduce its stake in Rainbow Tourism Group to less than 50% by the end of 2025. NSSA currently holds 91.5% of the firm’s issued shares.

In order to comply with Zimbabwe Stock Exchange rules and requirements, the authority is actively seeking for a suitable buyer for a portion of its RTG shares while retaining the majority shareholder, as it is a strategic investment for both the government and NSSA. “It is against this background that a disposal to a suitable investor is imminent,” said NSSA chairman Emmanuel Fundira.

NSSA Acting General Manager, Charles Shava, told FinX that the procedure is transparent and open, with a tender already released to attract potential buyers. Although the first attempt was unsuccessful, two unsolicited bids were received, and a financial advisory firm will be appointed to evaluate these proposals and determine viability.

“Our aim really is just to go below 50%, hopefully to 49% by the end of next year of 2025, we must be able to dispose of our current 91% shareholding. But the way we are doing it is we have already been to tender. So it’s a public process, it’s not a private process. We have already gone to tender to look for a taker for our stake. We were not successful in doing that.

The next stage is to revalue the asset to establish its current worth. The designated financial advising organisation will execute this activity to ensure an objective and expert review. “We are going to be appointing a financial advisory company to carry out that exercise. I think we are just at the tail end of that,” Shava said.

Shava noted that the final share reduction level will be determined by a number of criteria, including the company’s stock performance, overall business health, and the interests of various stakeholders, but the immediate goal is to reduce shares by less than 50%.

“In any case, the reduction will obviously be determined by a lot of other factors. At that point, we may look at how the stock is performing, how the business is performing, and any other interest. Remember, RTG, and obviously even the government itself, is an interested shareholder. But I can assure you, our immediate aim is to go below 50%.”

On the ZSE, RTG currently sits on market cap of close to US$39 million with a year to date gain of 18% which is lagging behind the All Share and Top Ten Index
-finx