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Harare - Zimbabwean investors are likely to cash in on their Old Mutual [JSE:OML] shares, either on the London Stock Exchange or the JSE, after the Reserve Bank of Zimbabwe increased fungibility to 49% from the previous 40%.
In a notice on Tuesday, the Zimbabwe Stock Exchange said the RBZ on June 15 2016 approved the increase in fungibility limits of Old Mutual and PPC [JSE:PPC] shares to 49% from the previous 40%.
"Shareholders on the Zimbabwean registers... can sell their shares on any exchange outside Zimbabwe where the two counters are listed," said the exchange.
"The ZSE will start accepting applications for removal of shares from the local registers on June 22 2016."
The increase in fungibility means shareholders who bought Old Mutual shares on the ZSE can dispose of them in offshore markets for better returns.
Investors on both the JSE and ZSE are paying about 17.5% more per share than the prevailing price on the ZSE.
The price gap presents arbitrage opportunities for investors holding Old Mutual shares in Zimbabwe.
There are more than 8.2 million shares valued at over US$18m eligible for removal.
