Published: 11 June 2018

LISTED short-term insurer, NicozDiamond Insurance Limited, will be delisted from the Zimbabwe Stock Exchange as First Mutual Holdings Limited (FMHL) assumes 100 percent ownership.

FMHL, which recently acquired 80,92 percent shareholding in NicozDiamond Insurance Limited (NDIL), has proposed to acquire the outstanding shares through a scheme of arrangement between the short-term insurer and its shareholders. First Mutual intends to merge NDIL with its wholly owned Tristar Insurance, a move expected among others to renew business underwriting capacity and broaden the firm's customer base.

"Following its acquisition of 80,92 percent shareholding in NDIL, FMHL proposed to acquire the remaining NDIL shareholding through a scheme of arrangement between NicozDiamond and its shareholders in term In terms of Section 191 of the Companies Act (Chapter 24:03).

"NDIL directors are taking the necessary steps to facilitate the proposed Scheme and the issuance of this circular to shareholders is part of the process to implement the proposed scheme," said the short-term insurer in a circular to shareholders.

"FMHL will own 100 percent of the issued share capital of NDIL and the listing of NDIL shares on the ZSE will be terminated as a result."

Recently, First Mutual advised the market of its intent to acquire the remaining shares in NDIL held by minority shareholders.

Towards the end of last year, First Mutual announced that it was set to acquire NicozDiamond following regulatory approval by the Insurance Pension Commission. Since 2009, the country's economy has been characterised by mergers and acquisitions as firms sought to strengthen their balance sheets in order to survive the harsh economic environment. The mergers and acquisitions approved by the Competition and Tariff Commission have in some instances involved local companies with foreign entities or local businesses among themselves.

The mergers and acquisition transactions have also been conglomerate, horizontal or vertical integration in nature.
- chronicle

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