HomeBusiness DigestZimre seeks nod for share buy-back

Zimre seeks nod for share buy-back

ZIMRE Holdings Ltd (ZHL) is seeking shareholders’ approval to buy back its shares.

This comes after the company’s $60 billion rights offer earlier this year that

resulted in fugitive businessman, Mutumwa Mawere, losing control over the company.

Mawere had an about 43% stake in the ZHL through Endurite and Ukubambana Kubatana Investments.

The ZHL issued a $60 billion renounceable rights offer to shareholders and part of the funds were channelled towards the recapitalisation of the South African subsidiary, Southern Union Reinsurance.

Mawere failed to secure a High Court interdict to block the extraordinary general meeting at which shareholders approved the rights offer.

The ZHL is planning to buy back, for cancellation, ordinary shares not exceeding 20% of the issued share capital.

The company will exercise the share buy-back of the shares at a minimum price of 50 cents per share, being the nominal value of the consolidated ordinary shares and at a maximum price per share of 5% above the weighted average of the market value of each share for five business days immediately preceding the date of the share buy-back.

“The share buy-back shall be financed from a reserve fund appropriated out of the revenue reserves, to be set up by the company for that purpose,” said Sibongile Mhlanga, the company secretary, in a statement.

She said the share buy-back would be done in terms of section 79 of the Companies Act Chapter 24:03 and the Zimbabwe Stock Exchange listing requirements.

Under the share consolidation, every five of the 4,5 billion ordinary shares of 10 cents each in the authorised share capital will be consolidated into one share of 50 cents each. – Staff Writer.

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