New Zimbabwe.com

NSSA divests from Art Corporation

THE country’s social security authority has divested from manufacturing concern Amalgamated Regional Trading (Art) Corporation following Monday’s book over of 55,4 million shares on the local bourse, an official has said.
The share parcel has a nominal value of about $332,000, going by Art’s price on Monday.
National Social Security Authority (NSSA) general manager James Matiza told The Source that the authority had disposed of its 12,7 percent shareholding through a book over. Art is currently in the market seeking $3 million to boost its working capital position.
“Based on the analysis made by our analysts, the NSSA board has decided to divest from Art. We wanted cash and somebody offered us a good price,” Matiza said.
He could not be drawn to comment on who had acquired the stake but market watchers said Equivest Asset Management, which holds 0,89 percent of Art could have snapped up the stake.
When reached for comment Art Corporation company secretary Franklin Mukarakate professed ignorance on the transaction.
“I know that there was a big sell in the market, but I have not heard of the details of who bought and who sold,” Mukarakate said.
Analysts say apart from raising capital, NSSA’s decision to divest could have been a result of pressure from government and Parliament which has in recent times questioned its investment decisions.
“With a lot of pressure coming in from Parliament and the executive arm of government, NSSA could have decided to review its investment portfolio, resulting in it disposing stocks that are underperforming,” an investment analyst who requested anonymity said.
NSSA has 70 percent of its investments in the equities market, giving it interests in 64 of the 69 companies listed on the Zimbabwe Stock Exchange and holding at least 10 percent shareholding in 12 counters.Advertisement