Zimre to sell off NicozDiamond stake to NSSA

As at July 31, major shareholders in NicozDiamond were NSSA (50.89 percent), Zimre Holdings (30.03 percent) and others at (19.08 percent), analysts say it is most likely that Zimre is selling its entire shareholding in Zimbabwe’s largest short-term insurer to the pension fund.

Under listing rules, a company normally issues a cautionary statement for the disposal of assets which constitutes at least 10 percent of its total assets, pointing to the disposal of Zimre’s stake in NicozDiamond (30.03 percent) to NSSA as the two already enjoy a close relationship.

Zimre is also in the process of transferring its regional operations to its Botswana registered, Emeritus International. Zimre plans to list Emeritus on the Botswana Stock Exchange (BSE).

In May this year, chief executive Stan Kudenga told analysts that the company intended to dispose of non-performing and non-core assets with no strategic fit to the group, unlocking value from illiquid assets and optimal redeployment of capital.

The group’s total assets amounted to $102.8 million as at December 31, 2016.

In its full year results, the company said it would consolidate the South African and Botswana-based businesses. It also said the South African subsidiary would be closed by end of August 2017 with its business being transferred to the Botswana entity.

During an analyst discussion in May this year, Kudenga said the group will exit Harare-based Colonnade Reinsurance in which it owns 61 percent and its wholly owned South Africa-based Emeritus Reinsurance, citing high operating costs.

The group plans to sell off Zep Reinsurance in Kenya for $2.5 million but is apprehensive about putting the money into the local market as it could be converted into bond notes.

Kudenga also told shareholders at the company’s annual general meeting in June this year, that the group received Zimbabwe exchange control approvals to disinvest from Continental Re Nigeria and use the proceeds to recapitalise its Mozambique Reinsurance Company unit.-The Source

(148 VIEWS)