ZB Financial Holdings (ZBFH) has offered to buy out minority shareholders of Mashonaland Holdings (Mashhold) after snapping up a control block of 40,59 percent stake in the real estate firm earlier this year.
In line with provisions of the Securities and Exchange (Zimbabwe Stock Exchange Listing Requirements) Rules, SI 134 of 2019, and the Companies and Other Businesses Entities Act, Charpeter 24:31, ZBFH was obliged to make the mandatory offer to buy out the minorities.
The Zimbabwe Stock Exchange (ZSE) listed financial services group said in a notice to shareholders that it was making a cash offer of $8 per share held by fellow ZSE listed Mashhold minority shareholders.
“Mashonaland Holdings minority shareholders who accept the mandatory offer by the closing date shall receive $8,00 for every Mash share disposed of in line with the outlined terms,” Mrs Pamela Chiromo, ZBFH chairman said. According to the notice, the mandatory offer opens on Wednesday, December 21 2022 and closes on Friday, January 27 2023.
Mrs Chiromo said ZBFH intended to maintain the ZSE listing of the property management company subject to meeting all the ZSE Listing requirements.
She said the company wanted to support the business in developing its land banks as well as repurposing some properties in line with the real estate market trends to enhance Mash Holdings competitiveness.
“ZBFH also intends to regain control of the company and influence its strategic direction to unlock trapped value and in the process unleash the latent potential of its underwriting business,” she said.
The banking group reached a control block in Mash Holdings following cancellation of 171 489 938 ordinary shares acquired under the share buyback scheme constituting 9,20 percent issued shares and subsequent purchases of shares in Mashonaland Holdings ZBFH has been undertaking.
ZBFH is a holding company for a group of companies, which provide commercial and merchant banking as well as other financial services. The company operates in four segments, including banking, fund management, reinsurance and life assurance.
The transaction comes after another ZBFH transaction consummated in 2020, which saw the group acquired by CBZ Holdings. The transaction followed NSSA’s disposal of 37,79 percent stake in ZBFH in exchange for CBZ shares worth $640 million, (US$7,8 million).
NSSA received 14,341 million new CBZ CBZ representing 2,15 percent stake in Zimbabwe’s largest banking group.
As a result NSSA, which also has investments in FBC (35 percent) and NBS (100 percent), increased its shareholding in CBZ by 2,15 percent to 18,5 percent.
The state pension fund said the decision to dispose of ZBFH shares was due to inconsistent dividends and an underperforming share price, which pushed it to divest from the group to free up its funds and preserve value for pensioners. – Herald
