Zimre acquires controlling stake in Fidelity Life

DIVERSIFIED financial services group, Zimre Holdings Limited (ZHL), has acquired a controlling stake in insurance firm, Fidelity Life Assurance (Fidelity), the two companies announced on Friday.

The deal means that Zimre is re-integrating Fidelity, which was once part of the group over 15 years ago, until it was unbundled.

“Shareholders are advised that Zimre Holdings Limited has acquired a control block in Fidelity Life Assurance Company Limited (FLA) and the full impact thereof is being determined,” the two firms advised shareholders.

“In the meantime, shareholders are advised to exercise caution when dealing in the securities of both FLA and ZHL until a full announcement is made.”

While finer details are yet to be released, earlier reports suggested that ZHL, which already held a 20,57 percent stake in Fidelity, purchased a further 35,09 percent shareholding, which was held by the National Social Security Authority (NSSA) via a share swap.

This means Zimre now holds over 55 percent stake in Fidelity and will in line with Zimbabwe Stock Exchange rules be expected to buy out minority shareholders and delist its new subsidiary from the bourse. — New Ziana