Ngwerume and associates to acquire 3.5% of Old Mutual

Published: 09 September 2013

FORMER Old Mutual Zimbabwe chief executive Mr Luke Ngwerume and his business associates Mr Toddy Moyo and Mrs Tracey Mutaviri will get a $12 million loan from the insurance group to acquire a 3,5 percent stake in the company, the Herald reported.

Mr Ngwerume and his partners will get the loan through their investment holding company Stiefel Investment (Private) Limited as part of the indigenisation agreement entered between Old Mutual Zimbabwe and the Government.

Mr Ngwerume who spent 29 years working for Old Mutual Zimbabwe is now a non-executive director of the insurance company’s subsidiary Central African Building Society.

Mr Ngwerume retired last year after seven years as chief executive of the group.

Mr Moyo is the chairman of CABS Midlands and Matabeleland Regional Board while Mrs Mutaviri is a non-executive director of Old Mutual Life Assurance Zimbabwe Limited.

The trio would get the funding in terms of the insurance group’s indigenisation plan agreed with outgoing Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere last year. "As envisaged and agreed at the time of agreement with the Minister, the transaction requires loan financing and is to be funded by the company through its subsidiary CABS.

"The purchase consideration for the shares is $13 016 238 for 11 621 641 issued and fully paid up B Class shares at a price of US1,12 per share," Old Mutual said in a statement.

Zimbabwe’s biggest insurance and property development company said a total of $12,7 million would be funded by the company after Stiefel made a 2 percent down payment.
- herald