CBZ Holdings Limited (CBZHL) is set to complete the acquisition of a 31.22 percent stake in First Mutual Holdings (FMHL) following approval of the transaction by shareholders at an extraordinary general meeting on Monday.
Group chairman, Marc Holtzman, said the main aim for the transaction was to create an institution that is well-calibrated to take any local risk and support operations in the region. He said during a post-EGM briefing to journalists:
The intention is to have one big, strong insurance company; therefore, the idea is to merge the operations in the short term and this will be done as soon as possible.
Prior to the transaction, CBZHL held a 3.23 percent shareholding in FMHL through a special purpose vehicle, PIM Nominees (Pvt) Limited.
The acquisition of the additional shares from NSSA, constituting 31.22 percent of the issued ordinary shares of FMHL, takes CBZ Holdings total shareholding to approximately 34.45 percent.
Mr Holtzman said the transaction would be a mixture of cash US$21 million to be paid in 18 months and equity.
Cash will be raised from the group’s assets and of the US$21 million, US$10 million will be paid within ten days of the fulfilment or waiver of the conditions precedent.
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