MASAWARA Plc is set to dispose 40% in Masawara Investments Mauritius Limited (MIM) to Sanlam Emerging Markets Proprietary Limited (SEM) in a transaction worth $11,6 million, the company said last week.
BY TARISAI MANDIZHA
SEM is an indirect subsidiary of Sanlam Limited, a financial services and insurance holding company listed on the Johannesburg Stock Exchange.
In a statement last week, Masawara said the implementation of the transaction was subject to fulfilment of various conditions precedent, including the obtaining of relevant regulatory approvals.
“Upon implementation of the transaction, MIM will hold the Masawara Group’s interests in the short-term and life insurance and reinsurance businesses in Zimbabwe, which comprise Zimnat Lion Insurance, Zimnat Life Assurance and Grand Reinsurance. The transaction valuation is at a premium to the combined net asset values of the insurance businesses,” Masawara said.
“In addition to acquiring an equity interest in MIM, SEM, through its affiliates, will offer technical support services to the company’s insurance businesses in Zimbabwe. MIM and SEM will explore new opportunities in other countries in Africa.”
However, the group said further announcements would be made upon fulfilment of the conditions precedent and implementation of the transaction.
The group added that should the transaction be successfully concluded, the proceeds would be applied in line with Masawara’s investment strategy.
Masawara is a Jersey registered investment company focused on acquiring interests in companies and projects based in Zimbabwe and the southern African region.
Masawara holds an effective 50% shareholding in Dandemutande Investments, which holds an Internet Access Provider Class A telecommunications licence which allows it to construct, operate, develop, extend and maintain a public data and Internet access network, and to offer Voice-over Internet Protocol services.
Masawara has a controlling shareholding in TA Holdings Limited and has 15,03% shareholding in iWayAfrica Zimbabwe (Private) Limited, an Internet service and business solutions provider in Zimbabwe.
Masawara owns an effective 40% interest in Joina City, the single largest commercial and retail building in Harare.
It also has interests in Minerva Zimbabwe, the leading provider of risk management services, insurance and reinsurance brokerage and human resources benefits consulting in Zimbabwe.
Masawara Plc invests in businesses and assets primarily located in Zimbabwe.