CBZ Bank Increases its Shareholding in First Mutual Holdings

​CBZ Bank, Zimbabwe's largest financial institution, announced the acquisition of an additional 31% stake in First Mutual Holdings Limited, the country's leading insurance and property firm. Before the acquisition, CBZ Bank had a 3.23% stake in FML via a PIM Nominees account. The additional 31% shareholding was purchased from the National Social Security Authority (NSSA), FML's largest shareholder with 66.22%. After the transaction, NSSA remained the majority shareholder with a 35% stake, followed by CBZ Bank with 34%. CBZ Bank announced after shareholders approved the transaction at the bank's extraordinary annual general meeting. According to data from the Reserve Bank of Zimbabwe, CBZ Bank is the country's largest lender, having disbursed 31% of loans across the country.

Insurance and Pensions Commission (IPEC) advised NSSA to restructure its shareholding in various companies as it had flouted investment procedures. NSSA began an exercise to redistribute its investment portfolio, including downgrading its stake in FML. In a circular to its shareholders, CBZ Bank said the board approved the firm's bid to pursue the acquisition after exploring the mutual benefits between CBZ Bank and FMH Limited. According to Rumbidzayi Angeline Jakanani, CBZ's group legal secretary, the bank was declared the highest bidder in June 2021, paving the way for a formal agreement with NSSA to begin the acquisition of 31.22% stake. The total price agreed for the acquisition was $6,356 billion, translating to $28 for each FMHL Ordinary share.

Rebecca Gaskin Gain

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