News / National
CBZ close to ZB takeover
14 Sep 2023 at 06:34hrs | Views
CBZ Holdings Limited (CBZHL) is on the verge of acquiring a controlling stake in ZB Financial Holdings Limited (ZBFHL) as part of its strategy to become a significant player in the financial services sector and attract foreign investment for national development projects, reports NewsDay Business.
Recently, CBZHL completed the acquisition of a 31.22% stake in First Mutual Holdings Limited (FMHL) from the National Social Security Authority (NSSA), which previously held 65.53% of FMHL's shares. This acquisition increased CBZHL's total stake in FMHL to 36.22%, as it already owned 5% of FMHL shares.
According to the details of the proposed transaction, CBZHL will hold a 68% stake in the new financial services entity, FMHL will have 17%, and existing shareholders of ZBFHL will own 15% once the acquisition is finalized. The completion of the deal is reportedly pending approval from the Competition Tariff Commission (CTC).
This development follows CBZHL's previous cautionary statements to shareholders regarding negotiations for a potential acquisition of a "complementary" business. ZBFHL also issued its own cautionary statement related to ongoing negotiations for the potential acquisition of a controlling block of securities that could significantly impact the company's share price.
As of the most recent data available, the market values of ZBFHL and CBZHL listed shares were approximately US$23.65 million and US$102.41 million, respectively. CBZHL's total assets at the end of the previous year were nearly US$1.4 billion, while ZBFHL's assets were approximately US$470 million.
ZBFHL's largest shareholders at the end of 2022 were Datvest Nominees (PVT) Limited (34%), Transnational Holdings Limited (23.43%), and ZB Financial Holdings Limited (10.08%).
While CBZHL CEO Blessing Mudavanhu did not confirm or deny rumors of the acquisition when questioned, he emphasized the organization's focus on strengthening its balance sheet and exploring synergies that could lead to mergers with other financial institutions.
In summary, CBZHL is poised to acquire a controlling stake in ZBFHL, a move that aligns with its growth strategy and aspirations to play a significant role in Zimbabwe's financial services sector. The acquisition is pending regulatory approval, and both companies have issued cautionary statements to shareholders regarding the potential impact of the transaction.
Recently, CBZHL completed the acquisition of a 31.22% stake in First Mutual Holdings Limited (FMHL) from the National Social Security Authority (NSSA), which previously held 65.53% of FMHL's shares. This acquisition increased CBZHL's total stake in FMHL to 36.22%, as it already owned 5% of FMHL shares.
According to the details of the proposed transaction, CBZHL will hold a 68% stake in the new financial services entity, FMHL will have 17%, and existing shareholders of ZBFHL will own 15% once the acquisition is finalized. The completion of the deal is reportedly pending approval from the Competition Tariff Commission (CTC).
This development follows CBZHL's previous cautionary statements to shareholders regarding negotiations for a potential acquisition of a "complementary" business. ZBFHL also issued its own cautionary statement related to ongoing negotiations for the potential acquisition of a controlling block of securities that could significantly impact the company's share price.
ZBFHL's largest shareholders at the end of 2022 were Datvest Nominees (PVT) Limited (34%), Transnational Holdings Limited (23.43%), and ZB Financial Holdings Limited (10.08%).
While CBZHL CEO Blessing Mudavanhu did not confirm or deny rumors of the acquisition when questioned, he emphasized the organization's focus on strengthening its balance sheet and exploring synergies that could lead to mergers with other financial institutions.
In summary, CBZHL is poised to acquire a controlling stake in ZBFHL, a move that aligns with its growth strategy and aspirations to play a significant role in Zimbabwe's financial services sector. The acquisition is pending regulatory approval, and both companies have issued cautionary statements to shareholders regarding the potential impact of the transaction.
Source - newsday
