HARARE, May 2 (The Source) – State-run pension fund, National Social Security Authority (NSSA) has increased its stake in Zimbabwe’s largest short-term insurer NicozDiamond to 50,9 percent after eight percent of minority shareholders accepted its mandatory offer.
NSSA was compelled to make an offer to minorities after it 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.
On the 7th, 21st and 24th of November last year, NSSA bought a total of 88,974,652 shares of NicozDiamond, representing 15,7 percent of the total issued share capital of the company. This increased its total shareholding in the insurer to 44,85 percent, triggering the mandatory offer on March 27 this year.
About 46,077,100 shares of the 312,578,689 shares held by minorities were offered to NSSA, representing 8 percent of the shares eligible for the mandatory offer.
NSSA said prior to the offer that it did not intend to delist NicozDiamond from the local bourse and had arranged $8,6 million from its own funds to pay for the offer at an offer price of 2,75 cents per share.
The pension fund has 70 percent of its investments in the equities market, with interests in 53 of the 60 companies listed on the Zimbabwe Stock Exchange. It holds at least 10 percent shareholding in 12 counters.
NSSA is also among the largest shareholders in RTG, Turnall and ZB Financial Holdings where it owns 36 percent, 32 percent and 38 percent respectively.