Zimre Holdings Limited (ZHL) has published a withdrawal of its cautionary statement published on the 16th of August 2017 stating that negotiations over the disposal of certain assets held by the company have been curtailed by the ongoing market developments and
the Board has terminated negotiations with the parties involved.
The Company will consider other funding alternatives to pursue its strategic opportunities.
“The Board of ZimRe wishes to advice shareholders and the investing public that negotiations over the disposal of certain assets held by the Company referred to in the Cautionary published on 16th of August 2017 have been curtailed by the ongoing market developments. The Board has mutually terminated the negotiations with parties involved,” said ZHL company secretary Lovemore Madzinga.
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- First Mutual to exit RTG … as Nicoz Diamond Deal faces collapse
ZHL holds 30.03% shares in Nicoz Diamond Limited (NDL), while National Social Security Authority (NSSA) is the major shareholder with 50.89% of the shares.
NSSA who are also the majority shareholder in First Mutual Holdings (FML) wanted to dispose their NDL shares to FML, and also acquire the ZHL shares. ZHL’s stake would make FMHL the major shareholder in Nicoz.
FMHL was trying to acquire 30 percent of ZHL shares through a swap deal that would see FMHL having 80,92 percent shareholding in Nicoz.
However, Zimre Holdings Limited (ZHL) has resolved to maintain their 30 percent interest in Nicoz Diamond.
Nicoz Diamond, FMHL merger under threat
Just last month ago FMHL shareholders had passed a resolution to acquire Nicoz Diamond and merge the short term business of Nicoz Diamond and a subsidiary of FMHL, Tristar Insurance.
The deal was largely depended on ZHL selling their shares to FML and with ZHL pulling out of the negotiations the merger might suffer a still birth.
- First Mutual Holdings passes resolution to acquire Nicoz Diamond
- Job cuts loom in First Mutual and Nicoz Diamond merger plan
The decision by ZHL not to sale their stake in Nicoz also comes hard on the heels of a High Court ruling that nullified transactions made by three former Renaissance Financial Holdings Limited (RFHL) directors who facilitated the possession of FMHL by the National Social Security Authority (NSSA), NSSA Holds the majority shares in both Nicoz Diamond and First Mutual Holdings.
The judgement could also effectively scupper the planned acquisition of Nicoz Diamond by FMHL – Multiple Sources.