- ZHL now owns 97.62% of ZPI
- Entitled to the remaining 2.38% according to COBE
- ZPI to be delisted from ZSE
Following negotiations which began in early September this year, Zimre Holdings Limited (ZHL) now holds 97.62% shareholding in Zimre Property Investments (ZPI) after acquiring 93.34% ordinary shares held by ZPI minority shareholders.
Before the acquisition, minority share holders held a total of 613,167,547 shares, representing 35.72% of the company while ZHL itself already held the majority of the ordinary shares with 1,103,499,120 representing 64.28% ownership of the company.
The acquisition was completed on a basis of 1 authorised but unissued ZHL Ordinary Share being traded for Every 2.78 ZPI Ordinary Shares held.
Consequently, ZHL now holds 1,675,875,433ordinary ZPI shares and owns 97.62% of the company while only 2.38% (40,791,234) remains in the hands of minority shareholders.
However, according to section 238 of the Companies and Other Business Entities Act (COBE), ZHL is entitled to acquire the remaining minority shares on the same terms that applied to shares whose holders accepted the original Offer since they surpassed 90%.
A further consequence of this move will be the subsequent delisting of ZPI from the Zimbabwe Stock Exchange.
According to the Group, the acquisition is expected to advance the interests of both current ZHL and ZPI minority shareholders through the pursuit of innovative and community changing developments, streamlining costs associated with listed entities and enhance the flow of cash to shareholders of the business as well as elimination of duplication costs which include governance costs associated with listing both the Parent and Subsidiary such as annual listing fees and annual report publication fees, among others.
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