Zimbabwe’s statutory pension fund, the National Social Security Authority (NSSA) continues to streamline its investment portfolio, and the latest development in this respect is its proposed disposal of a significant stake in Turnall Holdings and part of its shareholding in First Mutual Holdings.
NSSA is looking more towards foreign assets such as its stake in regional financer Afreximbank.
Turnall has since confirmed the proposed transaction:
“The board of directors of Turnall Holdings Limited advises all shareholders that one of the company’s shareholders, National Social Security Authority (NSSA) intends to dispose its 32.5% shareholding in the business as part of its investments consolidation strategy,” the company said.
The pension fund currently also holds 66.22% in First Mutual and is now inviting interested investors to submit expressions of interest for 31.22% stake in the insurance company.
NSSA will keep a majority 35% in the group in compliance with Zimbabwe Stock Exchange (ZSE) and Insurance and Pensions Commission (IPEC) requirements.
Said general manager Arthur Manase recently:
“This strategic move will see NSSA keep a majority shareholding at 35% in compliance with Zimbabwe Stock Exchange and IPEC requirements while bringing in a strategic investor with solid financial resources, synergistic, technical and strategic benefits to catapult FMHL into a regional insurance powerhouse.”
The latest transaction marks the third phase of its insurance sector consolidation which would see it offloading up to 31.22% in First Mutual Holdings to a strategic partner.
The first phase of this consolidation was came in 2017 and involved the merging of short term insurer NicozDiamond into First Mutual. The transaction, which was motivated by talks with a South African insurance giant at that time, helped strengthen First Mutual’s short term insurance business and solidified its market share.
And the second phase was implemented last year after NSSA increased its shareholding in Zimre Holdings via a share swap deal.