NSSA To Reduce Shareholding In First Mutual

By Anyway Yotamu/Business Reporter.

HARARE –  National Social Security Authority (NSSA) will reduce its shareholding in First Mutual Holdings Limited (FMHL) to 35%, sell its stake in Turnall Holdings and create a strategic alliance around National Building Society as it moves to unlock value for contributors and pensioners.

Recently appointed NSSA general manager Arthur Manase said in a statement that expression of interest for the authority’s 31.22% in FMHL, 32.55% in Turnall Holdings and strategic alliance around National Building Society have to be made by January 31.

Proceeds from the disposal would be allocated to impact investments and offshore investments, he said.

The strategic refocus comes after NSSA disposed of its shareholding in First Capital Bank and ZB Financial Holdings.

Manase said NSSA was implementing the third phase of its insurance sector consolidation which would see it offloading up to 31.22% in First Mutual Holdings to a strategic partner.

In the initial phases, NSSA merged NicozDiamond into FMHL and disposed of its stake in Fidelity Life and Zimre Property Investments in a share swap deal with Zimre Holdings Limited.

“This strategic move will see NSSA keep a majority shareholding at 35% in compliance with Zimbabwe Stock Exchange and IPEC requirements while bringing in a strategic investor with solid financial resources, synergistic, technical and strategic benefits to catapult FMHL into a regional insurance powerhouse,” Manase said, adding NSSA has been non-compliant since 2012.

He said the strategic shareholder was expected to “unlock further value through better technical and financial resources”.

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