Zimbabwe’s holding company of companies in general insurance, life, and pensions, and agro-industries, Zimre Holdings Limited (ZHL) has emerged as the major shareholder of Fidelity Life Assurance (FLA), with a total shareholding of 55.66%.
ZHL already had a total amount of 20.57% in FLA. The Group had formulated a plan to increase the Company’s shareholding in FLA to levels they can control its operations.
National Social Security Authority (NSSA) which constitutes 35.09% entered into a Share Purchase Agreement with ZHL for the purchase of FLA ordinary shares.
FLA has been struggling to capitalise its operations as it reels under the strain of huge operating costs.
The company operates three insurance businesses, Fidelity Life Assurance, Vanguard Life Assurance, and Fidelity Funeral Services.
It also has several other subsidiaries involved in the provision of microlending, medical aid, asset management, actuarial services, and property development.
In a joint statement, the ZHL board and FLA board advised shareholders that ZHL has acquired a control block.
“Shareholders are advised that ZHL has acquired a control block in FLA and the full impact thereof is being determined,” reads the statement.
Meanwhile, shareholders are advised to exercise caution when dealing in the securities of both FLA and ZHL until a full announcement is made.
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