Afre shareholders approve $8.631mn capital raising, removal of 3 directors

Afre shareholders approved the raising of $8.631 million through a rights issue, and the removal of 3 directors with 99% voting in favour of the 5 resolutions at an EGM held this morning.

The motion approving the rights off was approved by almost 100% with shareholders holding 131.4 million shares voting in favour, while 350 voted against. Proxies totally 60.4% were represented, with the chairman holding 39.7%.

The rights offer will see 162.8 million shares offered to shareholders at 5.3c in a ratio of 3 shares for every 4 held. The rights offer was being undertaken to meet minimum capital and solvency requirements of Afre's insurance businesses, chairman Innocent Chagonda told the EGM. NSSA is the underwriter of the offer, holding an effective 54%.

Of the $8.631 million raised, $1.5 million would go to FMRE Life & Health, $1.6 million to FMRE Property & Casualty Zimbabwe, $2 million to FMRE Property & Casualty Botswana, $1.65 million to Tristar, while the balance would go towards settling amounts owed to policyholders and the costs of the offer.

Shareholders also approved the resolutions removing Patterson Timba, Daud Dube and Norman Nyazema from the board, with 131.3 million voting for the removal of the first 2 and 131.4 million voting for the removal of Nyazema.