ZSE apologises for earlier than scheduled release of circular and announcement of FML restructuring

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The Zimbabwe Stock Exchange has apologised on an earlier erroneous publication of a draft circular for FML, flighted via its website on Friday. The draft circular was for a restructuring exercise of FML’s Reinsurance businesses in Zimbabwe and Botswana.  

In a press release, the ZSE said the draft circular has been taken down and necessary measures taken to ensure that similar errors are not repeated in future.

The withdrawn circular to shareholders sought the approval for the restructuring of FMLs reinsurance business FMRE Zimbabwe FMRE Botswana which would have seen a Botswana private equity firm Aleyo Capital subscribe for a 29.1% shareholding in FMRE Holding Company.

FMRE Holding company is a company created but not yet operationalised, with a view to control 100% of the two subsidiaries. In exchange, Aleyo Capital would inject BWP61 million which is approximately equivalent to circa US$5.3 million.

FML is a ZSE listed financial services group involved in short term insurance, short term reinsurance, life assurance, long term reinsurance as well as property sector. Its subsidiaries includes FML, FMP, Nicoz Diamond Insurance Company, First Mutual Health, First Mutual Wealth Management, FMRE and FMRE Property and Casualty.

In recent years FML has been a key mover in corporate action on the ZSE. The company recently concluded the consolidation of its short term business following its acquisition of Nicoz Diamond Insurance. The company is in turn majority controlled by state pension fund NSSA.

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