The National Social Security Authority (Nssa) has offloaded a 31,22 percent stake in First Mutual Holdings Limited (FMHL) to CBZ Holdings.
In a statement, NSSA general manager, Arthur Manase, said the divestiture, which was in line with the organisation’s strategic thrust, would still leave the State-owned entity as the majority shareholder in FHML.
“Nssa was holding equity in FMHL and other entities that is more than the permissible 35 percent. As a result, a partial divesture from FMHL was inescapable and was thus intended to meet compliance issues in line with the new Nssa ethos of good corporate citizenry,” Manase said.
“Nssa enlisted the services of an independent financial advisor to ensure that the transaction was to the best financial interest of Nssa. The bids were evaluated from a technical and strategic fit, followed by a financial evaluation and CBZH emerged as the most technically and financial bidder.”
“Nssa pushed for a transaction that involved cash in hard currency and equity in a 30:70 split. The hard cash proceeds will be utilised to enhance Nssa’s investments in offshore facilities in the interest of safeguarding pensioner’s funds. Nssa is already a shareholder in CBZH and the latest transaction will see it attain a dominant position in the integrated financial services group. This will enable Nssa to access increased dividend payments from the higher-performing blue-chip counter”
Additionally proceeds will be allocated to impact investments and offshore investments to help stimulate economic activity, generate foreign currency and create jobs.