CBZ advises shareholders to exercise trading caution amid acquisition talks – Nehanda Radio

Zimbabwe Stock Exchange-listed CBZ Holdings Limited has issued another cautionary statement regarding its potential acquisition of a complementary business, following previous warnings dating back to June 2022.

The company advised shareholders to exercise caution when dealing in its shares until a full announcement is made, citing the potential significant impact of the acquisition on its share value.

“Further to the Cautionary Announcements issued on 18 June 2022, 21 July 2022, 29 August 2022, 27 September 2022, 14 November 2022, 19 January 2023, 2 March 2023, 6 April 2023, 5 June 2023, and 26 July 2024, the Directors of CBZ Holdings Limited (‘the Company’), wish to advise all shareholders and the investing public that the Company is still engaged in negotiations for a potential acquisition of a complimentary business.

“The acquisition, if successfully concluded, may have a material impact on the value of the Company’s shares, the full impact of which is currently being determined.

“Accordingly, Shareholders are advised to exercise caution when dealing in the Company’s shares until a full announcement is made,” Rumbidzayi Angeline Jakanani, Group Chief Governance Officer, signed the cautionary statement.

This development comes after CBZ Holdings was granted a 90-day extension, effective July 10, 2024, to make a Mandatory Offer to remaining First Mutual Holdings Limited (FMHL) shareholders.

The Zimbabwe Stock Exchange (ZSE) approved the extension, contingent upon securing approval from the Competition and Tariff Commission (CTC).

CBZ Holdings initially acquired 31.22% of FMHL from the National Social Security Authority (NSSA) through a cash and share swap deal. The transaction aims to create a pan-African bank, unlocking value for existing shareholders and fostering wealth creation.

According to CBZ Holdings, the merger will enhance its regional presence, leveraging FMHL’s established operations in Southern African Development Community (SADC) jurisdictions.

The company also seeks to assemble top financial talent under one roof, positioning Zimbabwe as a regional financial hub.

The company views the acquisition as a key part of CBZ Holdings’ strategy to become a regional player, with management believing it will maximise shareholder value.

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