Zimbabwe News and Internet Radio

FML concludes Nicoz takeover

By Oliver Kazunga

First Mutual Holdings Limited (FMHL), which recently acquired NicozDiamond Insurance Limited, has made a mandatory tender offer to the latter’s minority shareholders to acquire the remaining 19,08 percent shares.

First Mutual Life
First Mutual Life

In its unaudited interim financial results for the six months ended 30 June 2018, FMHL said the mandatory tender offer to NicozDiamond Insurance Limited (NDIL) minority shareholders was in sync with the Zimbabwe Stock Exchange listing requirements.

“Subsequent to the acquisition of NicozDiamond Insurance Company Limited (NDIL) by FMHL made a mandatory tender offer to NDIL minority shareholders to acquire the remaining 19,08 percent shareholding in terms of the ZSE Listing Requirements,” said the group.

In June, FMHL, which had acquired 80,92 percent shareholding in NDIL announced that it had proposed to acquire the remaining shares through a scheme of arrangement between the short-term insurer and its shareholders.

“NDIL non-controlling shareholders all voted in favour of the proposal to buy them out on June 28, 2018 and the transaction was completed on August 10, 2018. NDIL was delisted from the ZSE on August 20, 2018,” said FMHL.

First Mutual acquired NicozDiamond following regulatory approval by the Insurance Pension Commission. Meanwhile, during the period under review, FMHL achieved improved profit amounting to $8,7 million compared to a profit of $4,3 million in 2017.

The group’s operating profit, during the six months period ended June 30, 2018 went up by 227 percent to $5,4 million compared to the prior period in 2017. NDIL contributed $1 million to the increase in the group’s operating profit.

“The group attained an investment profit of $1,8 million for the period June 30, 2018 against an investment profit of $13 million for the same period in 2017. The decline is a result of sluggish performance in shares in 2018 compared to 2017,” said FMHL.

The holding firm’s total assets increased by four percent to $344,2 million as at June 30, 2018 compared to December 31, 2017.

The growth was due to increases in investment property by $8 million and listed equity values by $11,1 million. Debt securities at amortised cost declined by $8,3 million.

“Cash and balances with banks increased by $3,1 million due to a combination of cash generated from operations and the restructuring of some of the debt securities at amortised cost,” it said. The Chronicle