NSSA To Offload 31% Stake In First Mutual Holdings Limited

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By Alois Vinga

NATIONAL Social Security Authority (NSSA) has announced plans to offload 31.22 % stake in First Mutual Holdings Limited (FMHL) in line with the investment strategy.

In an update, FMHL group company secretary, Sheila Lorimer said the move will result in the bringing of a strategic investor with sound financial resources.

“Shareholders are advised that the NSSA has announced its intention to reduce its stake in FMHL from the current 66.22% to 35% through offloading up to 31.22% to a strategic partner.

“This move will see NSSA in compliance with regulatory requirements, while bringing in a strategic investor with solid financial resources,” Lorimer said.

She said the move will result in achieving technical and strategic benefits to enhance the growth prospects of the First Mutual Group.

However, NSSA will remain as the single largest shareholder.

“These new developments may have a material effect on the price of the company’s securities.

“Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities until a full announcement is made,” Lorimer added.

The announcement comes shortly after NSSA’s recent update this week registering the intention to cede 32.5 % stake in listed roofing and building products manufacturer, Turnall Holdings Limited as part of its investments consolidation strategy.

The authority has been disposing stake in various investment portfolios since last year.

NSSA is set to dispose of its 35.09% stake in Fidelity Life Assurance (FLA) to Zimre Holdings Limited (ZHL).

The acquisition was done through a share swap agreement where NSSA will be issued with 65,14 million authorised but unissued ZHL shares on the basis of one ZHL ordinary share for every 0.59 FLA shares held by NSSA.

Another 37,79% stake in ZB Bank was also disposed to an entity linked to business tycoon and President Emmerson Mnangagwa’s adviser, Kuda Tagwirei.

Key stakeholders like the Zimbabwe Congress of Trade Unions (ZCTU) which has a board member representing workers’ interests in NSSA, have since criticised the authority for implementing the decisions without input from stakeholders.

But NSSA has dismissed such claims arguing that the transactions being undertaken are above board and in line with new investment priorities.