Zimpapers Logo

Harare Bureau

ZB Financial Holdings (ZBFH) has acquired a control block exceeding 35 percent shareholding in Mashonaland Holdings and subsequently made an offer to minorities.

Tinashe Masiiwa, the group’s secretary in a notice to shareholders said the controlling stake was achieved through a rights’ offer and market purchases.

“ZB Financial Holdings, together with its associates ZB Life Assurance Limited and ZB Financial Holdings Group Pension Fund have acquired a control block in Mashonaland Holdings primarily as a result of the share buyback, which was carried out by Mash and the subsequent market purchases.

“ZBFH will further notify the shareholders of Mash of its offer to minorities within 60 days of this notice,” he said.

ZBFH is a holding company for a group of companies, which have been providing commercial banking, merchant banking and other financial services.

The company operates in four segments, including banking, fund management, reinsurance and life assurance, and others. However, this transaction comes on the back of another ZB Bank transaction that was consummated in 2020 where the market witnessed the acquisition of ZB Bank by CBZ holdings. The transaction was a result of NSSA disposing of its 37,79 percent ZB Financial Holdings (ZBFH) shareholding in exchange of CBZ shares worth $640 million, (US$7,8 million).

For the 50 percent consideration, NSSA received 14,341 million new shares, valued at ZWl$640,041,800 in CBZ representing 2,15 percent stake, while for the 50 percent cash transaction, NSSA received US$11,646,889 after factoring transaction costs. The transaction saw NSSA, which also has investments in FBC (35 percent) and NBS (100 percent), increasing its shareholding by 2,15 percent in CBZ where it already has 16 percent shareholding.

According to NSSA, the decision to dispose of ZB Bank shares was on the back of inconsistent dividends and an underperforming share price resulting in the investment company freeing its funds so as to preserve value for pensioners.

Meanwhile, Mash Holdings has since notified shareholders to trade under caution until finalization of the matters at hand. According to Mash, now ZBFH Group, being a major shareholder of the company exceeding the 35 percent ZSE benchmark, will make an offer to purchase remaining shares held by minorities.

“The directors of the company, therefore, advise the company’s shareholders and the investing public to exercise caution when dealing in the company’s shares until finalisation of the matters at hand,” Mash said in a statement.

Should the offer to minorities successfully conclude, Mash Holdings will subsequently be de-listed from the Zimbabwe Stock Exchange (ZSE).

In a trading update for the quarter to September 30, 2022, Mash Holdings revenue grew 69,6 percent mainly driven by quarterly rent reviews implemented during the period to preserve value in view of the prevailing inflationary environment.

Occupancy levels improved from 78,5 percent in 2021 to 83 percent in September 2022 thereby contributing to revenue growth.