In a circular to shareholders this week, CBZ invited shareholders to approve the proposed acquisition of an additional 31,22% stake in FMHL currently held by the
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If agreed, the transaction will boost CBZHL's current stake, which stands at 3,23% in FMHL.
"Going forward, CBZHL intends to consolidate its position in FMHL by acquiring a control block in FMHL, 35% as defined in section 234 of the Companies and Other Business Entities Act.
"The proposed transaction is, therefore, part of CBZHL's diversification and consolidation strategy," CBZ said.
The bank added the decision was reached after the board's constant monitoring of domestic and regional trends as well as the commercial landscape to anticipate future customer needs and identify potential growth opportunities.
"The board is convinced that the proposed transaction is an investment in a future market leader in a business with complementary capabilities to CBZHL which operates within four main clusters, namely the banking, insurance, investment, and agro-insurance while FMHL has diverse interests in insurance, funeral services, and micro-finance," the circular added.
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