NSSA ups NicozDiamond stake to +40% putting an end to the Zimre of old
HARARE –The National Social Security Authority has increased its shareholding in NicozDiamond to above 40% in a move that many analysts say pushes towards the end of the once-mighty Zimre Holdings group.
NSSA took its shareholding to around 43% from 28.15% after purchasing stakes held by LAG Malta belonging to foreign investor Noel Hayes (4.3%) and Bruce Campbell who held just over 10%. The transactions were done in subsequent block deals spread over days on the Zimbabwe Stock Exchange. Under ZSE rules, NSSA has now breached the 35% mark which requires them to make an offer to minorities.
Nicoz has experienced an almost 72% growth in its share price from 1.6c at the start of October to 2.75c at the close of trades today as bids were pushed higher due to interest from both NSSA and ZHL. ZHL was the controlling shareholder in the company but with this transaction it becomes the second with just under 30%. It also has interests in ZPI, Fidelity and CFI. However, it lost control of CFI after Nick Van Hoogstraten increased his shareholding to around 40% while it also no longer holds the majority in Fidelity. ZHL is now controlled by a consortium led by the Rudlands.
While no comment could be obtained from NSSA, well-placed sources say that the state insurer is planning big amid indications that it is also looking at possibly merging First Mutual Holdings and Fidelity as part of plans. The life assurance company itself has also faced shareholder changes amid rumours that investment company DBF now holds a substantive stake.
On the ZSE, at close the NicozDiamond transaction of 56.6 million shares worth $1.55 million boosted the day’s transaction value of $2,255,084.23. The counter now has a YTD gain of 82.11%. Fidelity also made the risers table after gaining 1c to 11c amid reports the group is moving to change the late CEO’s contract posthumously while the FD is set to leave. CFI remained unchanged at 9.5c while ZHL did not trade.
The wider market, the Industrials Index, closed 0.64% higher at 128.72 while the Minings Index also put on 0.37% to 42.84 after gains in Bindura ahead of its results briefing next week.
Econet put on 1.04c to 29.04c and DZL was up 0.2c to 3.70c.