Govt approves demutualisation


Staff Writer

THE Minister of Finance and the Commissioner of Insurance have given formal and final approval to the demutualisation of First Mutual Life Assurance Society in terms of Sect

ion 33 of the Insurance Act.


This paves the way for one of the biggest financial transactions this year where more than 160 000 policyholders are set to benefit from the allocation of approximately 2,5 billion “free shares” in First Mutual Ltd.


“The approval we have been granted today will give us added impetus to go full steam towards the actual listing of First Mutual Ltd,” said First Mutual chief executive officer Norman Sachikonye.


“The allocation of free shares in First Mutual Ltd will contribute to our economy as a whole but more importantly it will unlock value to both our members and shareholders.”


Eligible members will during the next few weeks receive details of the various options now open to them and a form setting out the number of free shares they have been allocated.


Included in the form will be details of the cash option available and the number of shares that may be purchased in terms of the Proposal Rights Offer.


The offer price at which shares can be bought or sold will be contained within this form.


To help members in the decision process on which of the three options to select, two documents being shareholder information and information memorandum of the proposed rights offer and private placement will be sent to each policyholder.


First Mutual will now embark on a scheme of capital raising to fund its intended future developments and will thereafter apply for listing on the Zimbabwe Stock Exchange (ZSE).


Listing on the ZSE is expected to take place during November subject to favourable market conditions.