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Harare - Old Mutual Zimbabwe has started trading B class shares issued under the indigenisation and economic empowerment programme with effect from October 7.
According to the programme agreed with the empowerment ministry, Old Mutual Zimbabwe will offer 83 million shares which is 25% of its shareholding to selected institutions and individuals.
The shares worth about $100m will however not be traded on the Zimbabwe Stock Exchange, where Old Mutual Plc is listed.
Old Mutual group finance director Isaiah Mashinya told The Herald that the shares will be traded over the counter platform, where only approved potential investors will participate.
Clients eligible to trade in the Old Mutual shares include Old Mutual Life Assurance Company Zimbabwe pensioners, pension funds that are clients of Old Mutual, strategic indigenous partners, Old Mutual Zimbabwe Group staff and Old Mutual Zimbabwe Group staff pensioners.
CEO Jonas Mushosho said to trade in the shares, buyers and sellers must first open accounts through submission of the usual documents and then undergo a pre-approval process.
Trading of the shares will be conducted through Old Mutual Securities.
Old Mutual said the trading was launched to provide liquidity for the issued and fully paid B class shares in its capital, while also ensuring compliance with indigenisation provisions.
Old Mutual Zimbabwe’s agreement with the ministry of youth development, indigenisation and empowerment towards the implementation of and compliance with indigenisation and empowerment laws has several phases.
First phase of implementation
The first phase of implementation and compliance with the law will be 25% indigenisation, with beneficiaries as follows:
- A grant to pensioners, equivalent to 10% of Old Mutual Limited.
- Grants and awards to staff, equivalent to 9% of Old Mutual Limited.
- Allocation to strategic indigenous partners on a commercial basis equivalent to 3.5% of Old Mutual Limited. Old Mutual has already provided $12m to strategic partners Stiefel Investments - led by former CEO Luke Ngwerume - for the purchase of 3.5% of the firm’s shares.
- Grant to the youth development fund equivalent to 2.5% and valued at $10m, and an extra $1m will be made available from the Old Mutual Fund. The fund will be co-administered by the ministry and Old Mutual, and disbursed through Old Mutual/CABS.
There are further additional commitments from Old Mutual in support of the development and growth of the Zimbabwean economy. These are:
Agriculture fund: Old Mutual to work with the ministry of agriculture and the ministry of finance to support the development of agriculture in the countr,y within the framework of the national indigenisation policy and legislation.
Housing funds: a) $15m towards the construction of 1 500 housing units in Budiriro Township; b) participation in a $40m national housing fund.
Approximately $20m liquidity fund towards supporting businesses and disbursed through CABS.
Infrastructure fund: Old Mutual to work with the relevant ministries to support the development of infrastructure in the country.
According to the programme agreed with the empowerment ministry, Old Mutual Zimbabwe will offer 83 million shares which is 25% of its shareholding to selected institutions and individuals.
The shares worth about $100m will however not be traded on the Zimbabwe Stock Exchange, where Old Mutual Plc is listed.
Old Mutual group finance director Isaiah Mashinya told The Herald that the shares will be traded over the counter platform, where only approved potential investors will participate.
Clients eligible to trade in the Old Mutual shares include Old Mutual Life Assurance Company Zimbabwe pensioners, pension funds that are clients of Old Mutual, strategic indigenous partners, Old Mutual Zimbabwe Group staff and Old Mutual Zimbabwe Group staff pensioners.
CEO Jonas Mushosho said to trade in the shares, buyers and sellers must first open accounts through submission of the usual documents and then undergo a pre-approval process.
Trading of the shares will be conducted through Old Mutual Securities.
Old Mutual said the trading was launched to provide liquidity for the issued and fully paid B class shares in its capital, while also ensuring compliance with indigenisation provisions.
Old Mutual Zimbabwe’s agreement with the ministry of youth development, indigenisation and empowerment towards the implementation of and compliance with indigenisation and empowerment laws has several phases.
First phase of implementation
The first phase of implementation and compliance with the law will be 25% indigenisation, with beneficiaries as follows:
- A grant to pensioners, equivalent to 10% of Old Mutual Limited.
- Grants and awards to staff, equivalent to 9% of Old Mutual Limited.
- Allocation to strategic indigenous partners on a commercial basis equivalent to 3.5% of Old Mutual Limited. Old Mutual has already provided $12m to strategic partners Stiefel Investments - led by former CEO Luke Ngwerume - for the purchase of 3.5% of the firm’s shares.
- Grant to the youth development fund equivalent to 2.5% and valued at $10m, and an extra $1m will be made available from the Old Mutual Fund. The fund will be co-administered by the ministry and Old Mutual, and disbursed through Old Mutual/CABS.
There are further additional commitments from Old Mutual in support of the development and growth of the Zimbabwean economy. These are:
Agriculture fund: Old Mutual to work with the ministry of agriculture and the ministry of finance to support the development of agriculture in the countr,y within the framework of the national indigenisation policy and legislation.
Housing funds: a) $15m towards the construction of 1 500 housing units in Budiriro Township; b) participation in a $40m national housing fund.
Approximately $20m liquidity fund towards supporting businesses and disbursed through CABS.
Infrastructure fund: Old Mutual to work with the relevant ministries to support the development of infrastructure in the country.
