ZHL shareholders approve share-buyback

Published: 30 June 2014

Zimbabwe Stock Exchange-listed composite financial house Zimre Holdings (ZHL)'s shareholders have approved a repurchase of its stock.

In terms of the share buyback the maximum number of shares will not exceed 10 percent of the company's issued ordinary share capital.

ZHL chairman Benjamin Kumalo told the company's AGM this afternoon that it was in a strong financial position and were expecting positive feedback from the market in terms of the buyback.

"The company is in a strong financial position and will in the course of business be able to pay back its debts as the assets of the company will be in excess of its liabilities," he said.

Giving a trading update, management says it is content with the performance of the company in the first quarter of the current year.

Said group chief executive Albert Nduna: "The group performed reasonably well. For the three months period to March 31, 2014, the gruop recorded a Gross Premium of $24 million which, though 9 perecnt below same period last year, was within expectations.

"Gross Premium for the regional businesses was in line with budget and was ahead of last year. Local Reinsurance business, however, was below last year as it pursues its strategy of writing colelctable and profitable business," he said.

Nduna also said they are confident of a "turnaround" in the fortunes of agro-business, CFI Holdings.

"There are positive developments in the status of some of its land and efforts are underway to unlock value. Capital raiosing initiatives coupled with some internal re-organisations will see value being created for shareholders in the short-term,' he said.

Meanwhile, the AGM saw the shareholders adopting the audited annual financial statements for the year just ended, re-election of the company's directors and approval of the remuneration of the directors and that of the auditors for the past year. BDO Zimbabwe has been retained as auditors for the current year.
- BH24