NSSA to buyout NicozDiamond minorities for $8, 5m

The National Social Security Authority (NSSA) is set to complete a plan to buy-out minorities in the country’s largest short term insurer, NicozDiamond.

This comes after the pension fund increased its shareholding in NicozDiamond to 44, 9 percent as of November last year.

ZSE listing rules maintain that an investor who acquires a shareholding exceeding 35 percent in a company should make a mandatory offer to minority shareholders.

According to a circular to shareholders published by NicozDiamond today, NSSA plans to commence the mandatory offer to buy out minorities on April 3, 2017.

The offer will be for a cash consideration of 2,75 cents per share.

NicozDiamond said NSSA will purchase the minority shares with its internal funds at a total consideration of just over $8, 5 million.

“The offerer are using their own funds to settle all obligations arising from the offer. A letter of commitment has been provided by NSSA principal bankers for funding equivalent to the possible total value of the mandatory offer being $8 595 914,” reads part of the circular.

The mandatory offer is at the same price that NSSA acquired a 15, 7 percent stake late last year. The pension fund manager upped its shareholding in NicozDiamond last November after acquiring 88, 9 million shares, which translated to 15, 7 percent of the short-term insurer’s issued share capital.

The shares were bought at 2,75 cents per share. Meanwhile, NSSA intends to maintain the Zimbabwe Stock Exchange-listing of the company subject to meeting ZSE listings requirements.

Offer opens on April 3 and closes April 24; and results of the offer will be published on April 28.

NicozDiamondZimbabwe recently reported 41 percent dip in net profit to $959 798 in the full year to December 31, 2016 from $1, 6 million in the previous year.

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