Harare, (New Ziana) – Diversified insurance and property group, Zimre Holdings Limited (ZHL) said on Thursday it intends to once again regain total control of its listed subsidiary Zimre Property Investments (ZPI) through buying out minority shareholders via a share swap.
If the transaction pulls through, ZHL intends to delist ZPI from the
Zimbabwe Stock Exchange (ZSE).
ZPI was previously a 100 percent owned ZHL subsidiary before it was
unbundled and separately listed in 2007.
The separate listing saw ZHL’s shareholding being diluted to as low as
47.6 percent in 2016, but the stake has subsequently increased through
open market purchases to 64.28 percent.
ZSE listing requirements allow a shareholder controlling more
than 35 percent to offer to buy out minority shareholders.
“ZHL intends to acquire the entire shareholding of ZPI to enable it
to fully align the operations of ZPI with the strategies and interests
of ZHL without negatively affecting the interests of minority
shareholders in ZPI,” the group said.
ZHL is offering ZPI minority shareholders one new ZHL share for every
2.78 shares held in the subsidiary.
“The share swap is on the basis of a 30-day Volume Weighted Average
Price (VWAP) of ZHL shares of ZWL$0.8388 against a 30-day VWAP of ZPI
shares of ZWL$0.2409 cents plus 25 percent premium (ZWL$0.3012)
calculated as at 29 May 2020,” ZHL said.
The offer opens on September 11 and closes on October 12.
ZHL said there were seven major benefits to the delisting of ZPI which
include the ability to pursue innovative and community changing
development projects and the elimination of duplication costs such as
governance costs, annual listing fees and report publication fees
associated with having both the parent firm and subsidiary listed on
the ZSE.
Once delisted, the business will continue with its pursuit to develop
the property portfolio through development projects, the parent firm
said.
“A reconfiguration of the business will be critical to extract maximum
return from the investment property portfolio,” ZHL said.
New Ziana
