Published: 2 hours ago

First Mutual Holdings Limited (FMHL) is considering buying out minority shareholders in First Mutual Properties Limited (FMP) as part of plans that could lead to the property firm's voluntary delisting from the Zimbabwe Stock Exchange.

In a cautionary statement, FMHL said it is currently evaluating and engaging in discussions on a potential offer to acquire shares held by minority investors in FMP, signalling a possible restructuring aimed at consolidating full ownership of its property subsidiary.

"The board of directors of the company wishes to advise shareholders and the investing public that the company is currently engaged in evaluations and/or discussions regarding making an offer to acquire shares held by minority shareholders of First Mutual Properties Limited ahead of the proposed voluntary delisting," FMHL said.

The group warned that the outcome of the discussions could materially impact the price of its securities and urged shareholders to exercise caution when trading until a formal announcement is made.

FMP has also issued its own cautionary statement, confirming that it is assessing a potential transaction that may result in its exit from the local bourse. The company noted that the negotiations remain at an early stage but could have implications for shareholder value.

The move underscores a broader strategy by FMHL to streamline its operations and strengthen control over key subsidiaries within its diversified portfolio, which spans insurance, property, wealth management and microfinance.

FMP, formerly known as Pearl Properties, is one of Zimbabwe's leading real estate firms, with a portfolio of commercial properties across major urban centres.

For the year ended December 31, 2025, the company reported net property income of US$4.5 million, slightly down from US$4.8 million in 2024, while total revenue stood at US$8.97 million. Rental income remained the primary revenue driver.

Despite economic pressures, rental collections held firm at 80 percent, supported by an average occupancy rate of 84 percent. The company said it continues to engage tenants to address arrears while maintaining long-term relationships.

"In parallel, there has been a heightened focus on tenant and portfolio diversification to strengthen income stability and reduce concentration risk," FMP said.

If concluded, the buyout and delisting would mark a significant shift for FMP, potentially giving FMHL greater flexibility in managing its property assets outside the constraints of a public listing.
- online