FML publish circular to acquire NicozDiamond

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First Mutual has published a circular to shareholders with regards its plans to acquire the entire issued share capital of NicozDiamond Insurance Limited.  FML also plans to raise $17.25 million through a rights offer of 210,371,395 shares. Subsequent to the proposed NDIL acquisition, FMHL proposes to merge the operations of NDIL and TristarInsurance Company Limited.  An EGM will be convened on the 31st of August 2017 at 1000hrs. – NewsDay, 10 August 2017

CFI says due to unanticipated increases in the market price of CFI shares above the Offer Price of 22 cents, they have not received any shares on the mandatory offer. The offer closed on the 4th of August 2017. CFI is yesterday traded at 54.33 cents.– NewsDay, 10 August 2017

Dairibord reported a loss of $846,588 for the half year ended 30 June 2017 against a loss of $1.897 million prior year comparative. – The Herald, 10 August 2017

ZBFH yesterday reported its results for the year ended June 30, 2017 showing a 17% growth in total income to $34 million from $29,39 million in the comparable prior year period. Management said this was on the back of an increase in business volumes across its business units.   Net profit for the period to June 30, 2017 rose 38 percent to $8,17 million from $5,94 million recorded during the same period in the prior year. – LES 

Government will raid shops selling unlicensed imported products, as part of sophisticated measures targeting dealers fuelling the demand for contraband, to curtail smuggling and pluck leakages prejudicing Treasury of millions in potential revenue. The measures crafted to contain the widespread smuggling, especially influx of imports, which local industry has capacity to produce, would involve the use of information communication technology gadgets and drones in the surveillance of borders. This comes amid continued influx of imported products, the bulk of which are restricted under Statutory Instrument 64 of 2016, which is meant to give local producers latitude to retool, increase production and be able to match the stiff external competition. Zimbabwe Revenue Authority chairperson Willia Bonyongwe recently said that less than 10 percent of trucks entering Zimbabwe were being secured with electronic devices and monitored real time due to high reluctance among Zimra officials to enforce the new security measure. Industry and Commerce Minister Mike Bimha said that Government had completed crafting a nifty and multi-pronged strategy, which will look into processes, systems and the human factor aspects aiding the smuggling of goods into or out of Zimbabwe. – The Herald, 10 August 2017

Zimbabwe could be losing at least $240 million annually to fuel fraud while globally at least $40 billion is lost to smuggling activities associated with subsidies, tax and price differentials worldwide. Smuggled and stolen fuel deprives governments of tax revenue. According to a leading global authentication and information services company, Authentix Inc which assists customers in combating illicit fuel trade and managing the integrity of their global supply chains worldwide, Zimbabwe, among other African nations, has been facing national fuel supply chain problems such as smuggling, adulteration and dilution of fuels. Other challenges also include outright theft, all of which deprive Government of much needed tax revenue. “Projecting that around 40 percent of your fuel price(s) are constituted by duty and taxes, we estimate that you could be losing $240 million a year,” said Authentix managing director for Southern and East Africa Mr Johann van Niekerk. Zimbabwe spends about $1,3 billion in fuel imports annually. The challenges could be minimised by fuel marking, according to Mr van Niekerk. Fuel marking is a programme instituted to combat smuggling, dilution and adulteration. In the process, fuel marketers deploy marking programs to prevent grade switching and to ensure proper levels of additive were present. – The Herald, 10 August 2017

Zimbabwe National Roads Administration (Zinara), through ZB Bank, is floating a $60 million bond to spruce up the country’s road network, half of which was recently damaged by rains. ZB Financial Holdings Chief Executive Officer Ron Mutandagayi said subject to its success, another $40 million bond will be subsequently issued, bringing the total resource envelope to $100 million. The road fund administrator’s hand in tapping the capital markets has been strengthened by last year’s $50 million bond floated by the Infrastructure Development Bank (IDBZ) which was oversubscribed by more than 17 percent. Once raised, the funds will be committed to the Emergency Road Rehabilitation Road Rehabilitation Programme currently underway.  – The Herald, 10 August 2017

The State Procurement Board (SPB) has awarded a $400 million tender for the revival of the National Railways of Zimbabwe (NRZ) to a consortium comprising Transnet and the Diaspora Infrastructure Development Group, throwing a lifeline to the parastatal seen as a key enabler to economic revival.At least 88 companies across the globe bid for the resuscitation of NRZ, including eight from Britain and 16 from South Africa. The Herald is reliably informed that companies as far as China, Malaysia and the United Arab Emirates had also expressed interest in the deal. Transport and Infrastructure Development Minister Dr Joram Gumbo confirmed the development.  Gumbo thanked Government for taking over the NRZ debt, saying it opened the gates for investors, who all along were interested in the parastatal, but were uncomfortable with its indebtedness. – The Herald, 10 August 2017

By |August 10th, 2017|Categories: Headlines|

About the Author:

Kudzanai Sharara
Kudzanai’s background in financial journalism with ZFN, combined with a continuing education in financial management, provide a solid grounding for his work in the research department.