Minority shareholders in First Mutual Holdings Limited (FMHL) should wait longer for CBZ Holdings Limited’s (CBZHL) necessary supply to buy their shares.

The supply, required by Zimbabwe Stock Exchange (ZSE) laws following CBZHL’s acquisition of a controlling stake in FMHL from the National Social Security Authority (NSSA), in September 2023, stays pending.

CBZHL has secured an additional extension from the ZSE, till November 30, 2024, to publish the necessary supply. The delay stems from the Competition and Tariff Commission’s (CTC) ongoing overview of the transaction to make sure compliance with competitors legal guidelines.

The CTC expects to finalise its evaluation by the top of November 2024. Once accepted, the supply can be submitted to the ZSE for overview.

In the meantime, CBZHL has suggested FMHL minority shareholders to train warning when buying and selling their shares.

“Further to the Notices to Shareholders of First Mutual Holdings Limited (‘FMHL’) issued by CBZ Holdings Limited (“CBZHL”) on 19 April 2024 and 15 July 2024 referring to the Mandatory Offer in accordance with the Zimbabwe Stock Exchange Listing Requirements and the Companies and Other Business Entities Act (Chapter 24:31), shareholders are suggested that CBZHL has engaged the Zimbabwe Stock Exchange (‘ZSE’) for an additional extension of the time inside which CBZHL must make a Mandatory Offer to the remaining shareholders of FMHL as a result of the Competition and Tariff Commission (‘CTC’) has not but finalised its evaluation of the transaction.

“At this stage the CTC has communicated to the ZSE that it expects that its Board would have made the ultimate resolution on the transaction when it comes to the Competition Act (Chapter 14:28) by finish of November 2024.

“The ZSE has therefore granted CBZHL a further dispensation up to 30 November 2024 within which a mandatory offer must be made to the remaining shareholders of FMHL,” Rumbidzayi Angeline Jakanani, Group Chief Governance Officer informed shareholders in a discover on Monday.

The necessary supply is a regulatory requirement following CBZHL’s acquisition of a controlling stake in FMHL. The supply’s publication hinges on securing approvals from each the CTC and the ZSE.

Shareholders can be notified as soon as the supply is revealed, and CBZHL will present additional steering on the method.