Publications
Partners
Harare - Old Mutual [JSE:OML] is forging ahead with indigenisation plans for its Zimbabwean operations after ceding a 3.5% stake to a consortium led by former managing director Luke Ngwerume.
According to Zimbabwean newspaper the Herald, Old Mutual will fund the US$12m that Ngwerume, through his consortium Stiefel Investments, has to pay for the stake.
Old Mutual company secretary Laurence Karumazondo reportedly said his company will fund $12 755 913 of the $13 016 238 needed to purchase the shares.
The loan has 10-year tenure and will attract 13% interest per annum. Security will be the firm’s shares, representing Stiefel’s entire interest in its capital.
Stiefel will make a down payment of $260 324.
Under the deal, Stiefel Investments will be issued with 11 621 641 fully paid up “B class” shares at a price of $1.12 per share.
Karumazondo said the company will seek shareholders’ approval of the transaction at an annual general meeting to be held on 1 October 2013.
Old Mutual is among the foreign-owned companies under pressure to comply with Zimbabwe’s empowerment policy.
- Fin24
According to Zimbabwean newspaper the Herald, Old Mutual will fund the US$12m that Ngwerume, through his consortium Stiefel Investments, has to pay for the stake.
Old Mutual company secretary Laurence Karumazondo reportedly said his company will fund $12 755 913 of the $13 016 238 needed to purchase the shares.
The loan has 10-year tenure and will attract 13% interest per annum. Security will be the firm’s shares, representing Stiefel’s entire interest in its capital.
Stiefel will make a down payment of $260 324.
Under the deal, Stiefel Investments will be issued with 11 621 641 fully paid up “B class” shares at a price of $1.12 per share.
Karumazondo said the company will seek shareholders’ approval of the transaction at an annual general meeting to be held on 1 October 2013.
Old Mutual is among the foreign-owned companies under pressure to comply with Zimbabwe’s empowerment policy.
- Fin24
