HARARE - TA Holdings (TAHO.ZI) shareholders have approved the takeover of AIG Zimbabwe, in exchange for 27.01 mln non-redeemble, participating, non cumulative, convertible preference shares, that amount to 14.3% of TA's total equity.
AIG Zimbabwe is to be merged with Zimnat Lion (ZMAT.ZI) and TA's shareholding in the insurer will consequently rise 85% from 72% currently.
TA was aware that the shareholding was above that allowed under ZSE Listing Requirements and "will seek a satisfactory solution".
Following the EGM, TA's authorised share capital now comprised 250.2 mln shares, of which 223 mln were ordinary shares (previously 250 mln), 27.01 mln were non-redeemble, participating, non cumulative, convertible preference shares, and 200 000 were cumulative, convertable, redeemable, preference shares.
Chairman Shingi Mutasa noted that the transfer did not involve cash, would result in a bigger balance sheet for Zimnat Lion, and on a proforma basis would have seen earnings of $554 a share in the year to December compared with an actual outcome of $510.