By Alois Vinga
TOP financial services provider, CBZ Holdings says it has entered the stage of valuing a fair and reasonable price on the mandatory share offer floated last year.
The financier made a mandatory offer to all remaining shareholders of First Mutual Holdings Limited (FMHL) after surpassing a threshold set by the Zimbabwe Stock Exchange (ZSE).
The ZSE requires an offer to be made to other shareholders on a basis agreed with the main bourse when a person or group acquires at least a 35% stake in a listed company. The financier concluded a 31,22% purchase in FMHL from the latter’s former majority shareholder, the National Social Security Authority (NSSA), which at the time had 65,53% shareholding in FMHL.
The acquisition of FMHL took CBZHL’s total stake in the firm to 36, 22% as it already had an existing 5% shareholding in FMHL, triggering the mandatory offer.
According to the notice, on September 5, 2023, CBZHL acquired 14 428 149 shares, constituting 1, 9% shareholding in FMHL and acquired another 226 997 219 shares constituting 31, 22% shareholding in FMHL from NSSA.
In a notice to shareholders this week, CBZH group chief governance officer, Rumbidzayi Jakachani said the financier is now evaluating the fair price for the procedure which entails the act of squeeze-out, which involves forcibly acquiring the equity shares of a company from minority shareholders and compensating them in cash.
“Further to the Notice to Shareholders of FMHL issued by CBZH on 10 October 2023 relating to the acquisition by CBZH of a 36, 35% shareholding in FMHL.
“Shareholders are advised that CBZH is in the process of engaging all relevant stakeholders and is at the stage of valuing a fair and reasonable price on the Mandatory Offer by the ZSE Listing Requirements and the Companies and Other Business Entities Act (Chapter 24:31),” she said.
CBZH also acquired a significant stake in ZB Financial Holdings in developments which will see the group becoming a diversified financial powerhouse.