FINANCIAL juggernaut, CBZ Holdings Limited (CBZ) has announced that it will no longer pursue the remaining shares in First Mutual Holdings Limited (FMHL) following the blocking of the move by the Competition and Tariff Commission (CTC).
Last December, it was revealed that the CTC blocked CBZ from purchasing additional shares in FMHL.
CBZ had pursued these additional shares as it had a 36,22% stake in FMHL, after purchasing 31,22% shares in the latter in September 2023 from its former majority shareholder, the National Social Security Authority (NSSA). At the time, NSSA had a 65,53% stake in FMHL.
At this threshold, CBZ, as required by the Zimbabwe Stock Exchange listing rules, made a mandatory offer to the remaining shareholders of FMHL for their shares.
The acquisition of these shares in FMHL took CBZ’s total stake in the firm to 36,22%, as it already had an existing 5% shareholding in the former.
“Further to previous cautionary statements issued in respect of a potential acquisition of a complementary business in the financial sector, the last of which was issued on November 4, 2024, the directors of CBZ Holdings Limited wish to advise all shareholders and the investing public that the company received a decision from the Competition and Tariff Commission (CTC) on December 9, 2024 in respect in of the potential acquisition,” CBZ said on Wednesday.
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“The CTC set various conditions for approval of the transaction and having considered the nature of the conditions, the directors have decided that company will no longer proceed with the transaction.”
CBZ continued: “Accordingly, shareholders and the investing public are hereby advised that the company will no longer be proceeding with the acquisition of a complimentary business as previously announced. No further announcements will be made in respect of this issue.”
Purchasing the additional shares would have allowed CBZ to enter the region with a stronger balance sheet.
As of September 2024, CBZ had total assets worth ZiG30,05 billion, translating to US$1,2 billion.