ZHL not in a rush to dispose of NicozDiamond

By Nyasha Chingono

ZIMRE Holdings Limited (ZHL) says it is not in a hurry to dispose of its 30,03 percent stake in NicozDiamond after mutually terminating negotiations with potential buyers last week.

ZHL’s shareholding in NicozDiamond was part of an 80,92 percent shareholding that First Mutual Holdings Limited (FMHL) was planning to acquire under a share swap deal in which NicozDiamond shareholders were to receive one FMHL share for every 5,02 NicozDiamond shares held.

The Financial Gazette reported last month that the transaction had suffered a setback after ZHL’s board resolved to maintain its 30 percent interest in NicozDiamond, the country’s largest short-term insurer.

The transaction was instigated by NSSA, which holds controlling stakes in both NicozDiamond and FMHL.

ZHL’s managing director, Stanley Kudenga, said the NicozDiamond stake was one of its most valuable assets which could not be disposed under current economic conditions.

Kudenga said the company wanted to unlock real value from the sale of its assets.

“Because of current market conditions, we could not go ahead. We wanted real value and we did not want to accumulate monetary assets like the RTGS, especially in this current environment,” Kudenga told The Financial Gazette last week.

Kudenga said the company could consider future offers.

He said the NicozDiamond shareholding was not one of the assets covered by a cautionary statement withdrawn last week, indicating that ZHL’s interest in the short-term had “historically been a good investment”.

“We are not in a rush (to dispose of our shares), but we will consider offers that come on the table,” said Kudenga. The Financial Gazette