Nssa divests from Turnall
THE National Social Security Authority (NSSA) has announced that it is divesting from pipe and tile maker, Turnall, reducing its stake in insurance firm, First Mutual Holdings Limited (FMHL) and seeking a strategic alliance for its investment in the National Building Society (NBS) as it seeks to unlock value.
e state-run insurer says the implementation of divesture, consolidation, and optimisation of its investments was geared towards unlocking value for the benefit of its members who include pensioners and contributors.
As such NSSA said it was divesting 32,55% stake in Zimbabwe Stock Exchange (ZSE)-listed, Turnall and was inviting companies to submit expressions of interest by end of this month.
“ e authority’s board and principals have granted approval for the disposal of NSSA’s entire shareholding of 32,55% in Turnall Holdings Limited (“Turnall”) as part of refocusing and optimising the investment portfolio,” NSSA general manager Arthur Manase, said in a statement.
“ e authority hereby invites interested parties to submit expressions of interest for the 32,55% Turnall stake. Proceeds of this disposal are earmarked for strategic foreign currency generating investments. Proposals should be submitted in sealed envelope to NSSA through the general manager’s office by 31 January 2021.”
“NSSA has commenced initiatives to implement phase three of the insurance cluster consolidation strategy which involves reducing its stake in First Mutual Holdings Limited (“FMHL”) totaling 66,22% through offloading up to 31,22% to a strategic partner,” Manase said.
“Given the solid financial position of FMHL, which has benefited from NSSA’s support over the years, NSSA wishes to execute the final phase of its consolidation and refocus strategy through bringing in strategic partners capable of helping FMHL in its next phase of growth.
Manase said NSSA aims to be a responsible corporate entity in line with values of transparency, honest and accountability. He added that the authority needed to share its investment risk in line with good corporate governance.
“Phase one of the insurance cluster consolidation was initiated in 2017 and involved the merging of short-term insurer NicozDiamond into FMHL through a disposal of NSSA’s stake in NicozDiamond in return for shares in FMHL. e transaction helped strengthen FMHL’s short term insurance business and solidify its market standing as one of the leading insurers in the country,” Manase said.
“ e second phase, which was implemented late 2020, saw NSSA support the consolidation of Zimre Holdings Limited (“ZHL”)’s strategic business units — Fidelity and ZPI — through the disposal of NSSA’s shareholdings in Fidelity Life and ZPI in a share swap deal with ZHL. is leaves NSSA’s insurance sector investments centred around FML and ZHL with vital cross linkages.”
e authority invited firms to submit expression of interest for the 31.22% FMHL stake through the General Manager’s Office by 31 January 2021.— Staff Writer.