Source: ZHL intensifies restructuring drive – DailyNews Live
BUSINESS WRITER 17 August 2017
HARARE – Diversified group, Zimre Holdings Limited (ZHL), has begun
negotiations over the disposal of certain assets as it intensifies its
restructuring drive.
Company secretary Lovemore Madzinga yesterday said the firm wanted to use
the disposal proceeds in new ventures.
“The company has begun negotiations over the disposal of certain assets
held by the company. The proceeds of the disposals shall be utilised to
support the company’s new strategic endeavours,” Madzinga said.
Last month, ZHL chief executive Stanley Kudenga announced the group was
exiting Nigeria and Uganda operations where the investment holding company
had 1,4 percent and 2,43 percent shareholding in Continental Re (Nigeria)
and Uganda Re respectively.
The Zimbabwe Stock Exchange-listed company is also currently in
discussions with an investor to buy its 49 percent stake in Guardian
Reinsurance, Zambia and will exit Diamond General in Zimbabwe.
This is part of a restructuring exercise by the listed investment holding
company which will see ZHL disposing of shareholding in regional companies
where the group does not have control.
Kudenga also said ZHL is looking at merging its South African unit,
Emeritus Re with First Re in Botswana as the South African market has
become saturated and heavily regulated imposing a cost burden on
operations.
Kudenga said the assets were there for the turnaround strategy of the
group.
“We want to re-establish that capacity to become a prominent player
leveraging on a strong balance sheet and cash wallet coming from
insurance,” he said, adding that the restructuring was set to create a
lean structure that will leverage on ICT to deliver products.
The ZHL boss also said ZHL was going to insist on control in operations,
adding “we have learnt our mistakes on the local units”.
ZHL used to have controlling shareholding in Fidelity and NicozDiamond.
In June, ZHL created an off-shore investment company to house its regional
operations and mobilise resources for deployment in the units, as part of
its restructuring.
The offshore company, Emeritus International, to be based in Botswana,
will be wholly owned by ZHL with plans of listing on the stock exchange.
Kudenga said the new company has already received approval from the
central bank.
After operationalisation, First Re (Botswana), Malawi Re, Zambia Re and
Moza Re will be wholly owned by Emeritus International which will
determine the acquisitions and disposals in the region.
“The structure will be able to raise capital to strengthen regional
operations. It gives us the capacity to be able to raise international
capital from Botswana and deploying it to regional operations,” Kudenga
said.
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