Competition Regulator Rejects CBZ's Bid For Additional FMHL Shares
The Competition and Tariff Commission (CTC), the competition regulator, has blocked CBZ Holdings Limited’s plan to acquire additional shares in First Mutual Holdings Limited (FMHL).
In 2023, CBZ purchased a 31.2% stake in FMHL from the National Social Security Authority (NSSA), increasing its total ownership to over 36%.
Under Zimbabwe Stock Exchange (ZSE) regulations, this required CBZ to make a mandatory offer to FMHL’s remaining shareholders. However, this proposal has now been halted.
In a notice to FMHL shareholders issued on December 05, CBZ’s Group Chief Governance Officer, Rumbidzayi Angeline Jakanani, said:
Further to the Notice to Shareholders of First Mutual Holdings Limited (“FMHL”) issued by CBZ Holdings Limited (“CBZHL”) on 31 October 2024 relating to the Mandatory Offer in accordance with the Zimbabwe Stock Exchange Listings Requirements Sl 134 of 2019 and the Companies and Other Business Entities Act (Chapter 24:31), Shareholders are advised that the Competition and Tariff Commission (“CTC”) made its final decision on 29 November 2024 on CBZHL’s application for the approval of the acquisition of additional shareholding in FMHL through a Mandatory Offer.
The CTC has resolved that CBZHL must maintain 31.22% shareholding in FMHL which was initially approved by the Commission.
In light of the decision by the CTC, Shareholders of FMHL are hereby advised that CBZHL will no longer be proceeding with the Mandatory Offer to the Minority Shareholders in First Mutual Holdings Limited.
No further announcements will be made in respect of this issue.
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