ZimRe Holdings Limited (ZHL) made a profit of nearly $2 million after it finally sold its 30,03 percent stake in insurance firm, NicozDiamond to the state controlled pension fund, the National Social Security Authority (NSSA).
ZHL had earlier put off the sale, which had been under consideration for sometime, citing unfavourable market conditions. But the firm said market conditions had since changed necessitating the sale, from which the re-insurance firm pocketed $7 040 million.
“As at the transaction date, the shares had a book value of $5 208 million resulting in a gain of $1 832 million which will be reflected on the statement of comprehensive income for the year ended December 31, 2017,” ZHL said, adding the sale was effective 19 December 2017.
The disposal will allow Zimre Holdings Limited to realign its group assets in order to focus on the reinsurance business and property development.”
Zimre has already announced plans to consolidate its regional operations through establishing a company that will be listed in Botswana. The conglomerate, which was early this year removed from the United States sanctions list, has operations which span the insurance, agriculture and property sectors.
After acquiring the stake, NSSA has said it will in turn sale the stake to First Mutual Holdings Limited, in which the pension fund is a major shareholder, in exchange for additional new FMHL shares.
The move would consolidate the pension funds control of the insurance group. — New Ziana