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First Mutual to merge two units

Tuesday, March 10, 2015
Tarisai Mandizha (Newsday.co.zw)

ZIMBABWE Stock Exchange-listed financial services group First Mutual Holdings is set to merge two of its units into a company that has been dormant since 2007.

The two units that will merge are FMRE Property and Casualty Private Limited and FMRE Life and Health Private Limited. A merger is a combination of two or more companies to form one entity.

According to the recent Government Gazette, the two companies are seeking permission from the Ministry of Finance and Economic Development to transfer all the assets and liabilities to First Mutual Reinsurance Company Limited.

“Notice is hereby given that FMRE Property and Casualty Limited, FMRE Life and Health Private Limited and First Mutual Reinsurance Company Limited intend to make application to the Minister of Finance and Economic Development in terms of section 33 of the Insurance Act to sanction the transfer of all the assets and liabilities of FMRE Property and Casualty Private Limited and FMRE Life and Health Private Limited to First Mutual Reinsurance Company Limited, a company incorporated in Zimbabwe,” reads the notice in the Government Gazette in part.

“The transfer will form part of a combination of transactions which will result in a merger of the business of FMRE Property and Casualty Private Limited and FMRE Life and Health Private Limited under First Mutual Reinsurance Company Limited.”

The notice added: “The parties have entered into an agreement in terms of which FMRE Property and Casualty Private Limited and FMRE Life and Health Private Limited will, subject to requisite corporate and regulatory approvals and subject also to the approval of the Minister, through a scheme of reconstruction merge their business into single entity.”

It said in order to implement the scheme, FMRE Property Casualty Private Limited and FMRE Life and Health Private Limited “will transfer all their assets and liabilities to First Mutual Reinsurance Company Limited, a company which has been dormant since 2007”.

“First Mutual Reinsurance Company will thereafter operate under a composite licence, undertaking both property and casualty and life and health reinsurance business, but under separate divisions,” reads the Government Gazette.

It said that subject to ministerial consent and all regulatory and corporate approvals would be achieved in such a manner that FMRE Property and Casualty Private Limited and FMRE Life and Health Private Limited will each declare a dividend in specie of an amount equating to the net asset value to be transferred to First Mutual Reinsurance Company Limited.