HARARE, December 7 (The Source) – State-run pension fund, National Social Security Authority (NSSA) is set to make a mandatory offer to compulsorily buy out minority shareholders in NicozDiamond after it raised its shareholding in the insurer to 44,85 percent last month.
NSSA bought 56.6 million shares, 10 percent of Zimbabwe’s largest short-term insurer NicozDiamond’s total issued share capital, that were offloaded by a foreign investor at 2,75 cents on November 23.
The pension fund reportedly purchased stakes held by LAG Malta belonging to foreign investor Noel Hayes (4,3 percent) and part of the stake held by Bruce Campbell who held just over 10 percent.
“The company would like to advise its shareholders and the investing public that it has received notice that its major shareholder National Social Authority (NSSA) has acquired a further shareholding in the company,” said NicozDiamond Insurance Limited in a statement on Wednesday.
According to ZSE listing rules, a company which has acquired a shareholding exceeding 35 percent should make a mandatory offer to minority shareholders of the acquired listed company.
“Section 9 (Note 1A) of the ZSE listing rules triggers certain obligations by any acquirer who reaches a threshold of 35 percent. Accordingly the company has begun instituting measures to ensure compliance with the ZSE listing rules,” said NicozDiamond.
NSSA, which has 70 percent of its investments in the equities market, has interests in 53 of the 60 companies listed on the Zimbabwe Stock Exchange, holding at least 10 percent shareholding in 12 counters.
Other major shareholders are Zimre Holdings Limited with 28,78 percent and Campbell with approximately five percent stake.