ZIMBABWE’S ZHL Holdings Ltd, a successor company of Zimbabwe Reinsurance Company (Zimre), says it has not applied for liquidation of its troubled South African subsidiary
The company’s chief operating officer Solomon Tembo this week told businesdigest that the company was in fact under mandatory curatorship.
He said they were fighting to reclaim the business by way of injecting fresh capital in the Johannesburg firm.
“We are working on addressing the situation by raising funds for the recapitalisation of the company,” said Tembo.
Tembo said they were looking forward to engaging regulatory authorities in that country to discuss the best possible way of salvaging Zimre SA, mired in structural difficulties and inherited shortcomings dating back to its incorporation.
The ZHL number two claimed that they had already made provisions for the sinking financial institution.
He would, however, not explain from where exactly they would get the funds.
Meanwhile, the Zimbabwe Stock Exchange-listed ZHL says it is going ahead with plans to list its property division, Zimre Properties.
Zimre Properties holds vast sums of dollars worth of properties that can easily be traded.
The move, coming after insurance competitor First Mutual’s announced plans to list its real estate portfolio, would strengthen Zimre’s revenue earning capacity and fulfil a long-term goal of realising value.
Zimre and First Mutual’s anticipated listings broaden a phenomenon currently taking hold in Zimbabwe and pioneered by Mashonaland Holdings (Mashhold).
Hospitality group Zimsun Leisure then perfected the art by spurning off Dawn Properties, whose attempted economic fundamentals-driven merger with Mashhold prematurely ended last month.