OLD Mutual Zimbabwe Limited will today begin trading part of 25% shares worth $100 million allocated to various interest groups under the company’s indigenisation plan.
Tarisai Mandizha
Speaking at the launch of a platform that will facilitate the trading of the shares on Friday, Old Mutual group chief executive officer Jonas Mushosho said following the approval of the indigenisation strategy in 2012, a share split was effected for 100% of the issued and fully paid ordinary shares in Old Mutual after which 75% were converted into 249 million “A” class shares and 25% into 83 million “B” class shares.
“To manage continued compliance with indigenisation regulations, it was decided that the “B”class shares be introduced to the local market through the Over-The Counter (OTC) Trading Platform, run by OMSEC. In 2013, 29 million “B” shares have vested and become available for trading,” Mushosho said.
Mushosho said the trading of the shares, which begins today, would be selected and approved by potential investors and pre-approval buyers in conformity with the regulatory bodies that govern compliance with indigenisation regulations.
He said clients eligible to trade on the Old Mutual OTC platform include Old Mutual Assurance Company Zimbabwe (OMLACZIM) client pensioners, pension funds that are clients of the OMLACZIM, strategic indigenous partners and employees of the Old Mutual Zimbabwe Group, Old Mutual Zimbabwe Group staff pensioners and any other persons or institutions that meet the indigenisation regulations criteria and are approved by the directors of Old Mutual.
He, however, said OTC trading was formed to provide liquidity for the issued and fully paid B class shares in the capital of Old Mutual while ensuring continual compliance with provisions of the Indigenisation and Economic Empowerment General Regulations 2010, as amended.
Mushosho said prior to the agreement of September 2011, the entire issued share capital of Old Mutual was held by Old Mutual (Netherlands) BV, a subsidiary of Old Mutual plc.
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He said the fully paid B class shares in the capital of the company were set aside for allocation to eligible participants who include employees 11%, client pensioners 8%, strategic partners 3,5% and Kurera/Ukondla Youth Fund 2,5%.
