Harare – Diversified Financial services group, Old Mutual Zimbabwe’s shareholders have approved a massive organisational restructuring exercise which will see the Group’s operations being consolidated into three units from the present eight.
The consolidation will be based on the major lines of businesses operated by the Group namely, Insurance, Wealth Management and Banking.
At an AGM held in the Capital on Wednesday, shareholders unanimously voted in favour of the restructuring which was tabled a month ago and was in line with parent Company’s strategy to realign the overall Group’s operations.
Consequently, Old Mutual Property Zimbabwe (Pvt) Ltd and Old Mutual Real Estate Zimbabwe (Pvt) Ltd will be merged together with Old Mutual Zimbabwe Investment limited into Old Mutual Investment Group Zimbabwe.
Additionally, the motion also granted permission to merge CABS and CABS Custodial Service (Pvt) Ltd and also the merging of Old Mutual Property Investment Corporation (Pvt) Ltd and Old Mutual Life Assurance Company Zimbabwe Limited.
Shade Services Private Ltd which is owned by Old Mutual Zimbabwe will likewise seize operations into the other retained units and its employees will be inter-grated into the retained units.
The restructuring exercise is expected to result in a huge costs reduction, a simplified operating structure, and improved operating efficiencies which are expected to filter into the financial bottom line.
In relation to the restructuring, the Company announced that it is expected that this will result in a reduction of the legal entities in the Group.
“Having reviewed the current structure of the Old Mutual Zimbabwe Limited Group, the Directors have concluded that the interests of both shareholders and customers would be best served by restructuring the Group into a simpler and more optimal outfit,” the Group said.
In April this year, OMZL started a retrenching exercise in line with the current challenging operating environment and to maximise cost efficiencies.
In 2017, parent company, Old Mutual Limited which is listed of the JSE, also took a massive restructuring exercise which saw it exit America and Asian markets to focus on Africa.
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