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Zimnat after AIG insurance

Roadwin Chirara

LISTED short-term insurance concern, Zimnat Lion, is holding negotiations with short-term insurer, AIG Insurance, for possible acquisition.

, Helvetica, sans-serif”>The proposed merger, according to officials privy to the goings-on, will be structured on a share transfer arrangement which will result in directors of AIG being allocated shares in Zimnat in exchange for their controlling shareholding in the short-term insurance company.

Zimnat is understood to have structured the deal in a way that would allow it access to the management of the company and at the same time access to AIG’s clients and markets.

Officials said the deal was in its final stages of completion as Zimnat’s holding company, TA Holdings, was aiming at unveiling the deal at its upcoming results presentation meeting set for next week.

Efforts to reach AIG’s chief executive officer Joe Whatcha and TA executive chairman, Shingi Mutasa failed as they did not return calls made by the businessdigest.

Zimnat’s proposed acquisition of AIG comes after the company acquired a controlling interest in another short-term insurance company, Lion of Zimbabwe Insurance Company, to form Zimnat Lion Company.

The merger of the two companies resulted in the new entity becoming the country’s leading short-term insurer.

TA Holdings Ltd has a 54,63% stake in Zimnat Lion through its 100% holding in Freecor Holdings Ltd and Bude Holdings Ltd. Freecor and Bude own 41,29% and 13,34% of Zimnat Lion, respectively.

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