Fidelity Life  to restructure

Chipo Chaumba
Zimbabwe Stock Exchange-listed insurance concern, Fidelity Life Assurance Zimbabwe, is pressing ahead with plans to restructure its capital structure.

The transaction involves the restructuring of the group’s capital structure through the issuance of shares by way of a rights offer.

The company yesterday updated its previous cautionary statements on the matter.

In the new cautionary, Fidelity Life company secretary Chipo Matongo said: “Further to the cautionary announcement dated July 22, 2019, and subsequent updates on August 27, September 23, October 14, November 4, November 25, 2019 and December 16, 2019, the directors of Fidelity Life Assurance Zimbabwe Limited wish to advise all shareholders and the investing public that the company is still engaged in discussions that involve a potential transaction that may have a material impact on the value of the company’s shares.

“The transaction involves the restructuring of the company’s capital structure through the issuance of shares by way of a rights offer.

“Further details of the transaction will be provided once discussions have been finalised. Shareholders are therefore advised to exercise caution when trading in the company’s shares.’’

Fidelity Life Assurance of Zimbabwe Limited is a holding company providing products and services for life assurance, employee benefits, asset management, medical insurance, funeral assurance provision of actuarial services and residential property development.

The company’s capital is made up of $22 million in equity while the balance of $231 million is in liabilities.

Fidelity Life Assurance had a positive run last year, posting a 154 percent growth in revenue in the third quarter, which closed at $45 million, from $18 million in the prior comparable period. Group revenue performance was boosted by net investment income, which resulted in a 262 percent growth in total revenues, which closed at $129 million from $35 million prior year comparable.

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