In an endorsement of Government’s indigenisation programme, Old Mutual Zimbabwe Limited (OMZIL) will become the first company to trade its empowerment shares on the Financial Securities (FINSEC) Alternative Trading Platform (ATP).The integrated financial services company, will tomorrow list its shares on the empowerment segment of the newly licensed ATP.
“In pursuit of the company’s approved indigenisation implementation plan, a total of 83 011 718 issued and fully paid B Class shares in the capital of the company have been set aside for allocation or have been allocated to the approved shareholders,” Old Mutual said in an abridged statement.
The shares have a nominal value of $0,0000032 per share. The indigenisation plan, approved by the then Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere was concluded in November 2011 and resulted in 10 percent of Old Mutual Zimbabwe being awarded to qualifying staff (comprised of 7 percent to staff share schemes while 3 percent went to the staff pension fund).
Pensioners benefited from an equivalent of 9 percent of the company (8 percent to client pensioners and 1 percent to retired staff), while the company’s strategic partners and the Youth Fund have been allocated 3,5 percent and up to 2,5 percent respectively.
According to President Mugabe, Government introduced the Indigenisation and Economic Empowerment Policy to deliberately empower historically disadvantaged indigenous Zimbabweans and to grant them ownership and control of the country’s means and factors of production.
The policy, the President said, was designed to enable indigenous people to be significant players in the mainstream of the country’s economy.
OMZIL said since it issued the B Class shares, trading of the shares had been conducted exclusively through Old Mutual Securities on an over the counter trading platform; which is essentially a dealers’ network.
However, the gazetting of the securities alternative trading platform rules this year presented OMZIL with an opportunity to list the B Class shares on the ATP, which is operated by FINSEC; a securities exchange licensed by the Securities and Exchange Commission of Zimbabwe.
The listing will be by introduction; which is a process through which already issued and fully paid shares are listed and do not require any marketing. OMZIL said the rationale behind the listing of the shares on the ATP included the need for broader market participation in the capital of company and enhanced liquidity, compared to the OTT trading platform scenario.
Since its incorporation in June 1998, the entire share capital of OMZIL had been held directly by Old Mutual Plc, a multi-listed financial group with its primary listing in London.
Further, OMZIL said listing the shares on the ATP will allow a market determined price discovery mechanism in the trading of the OMZIL B Class shares as well as increase visibility of the OMZIL brand in the market. OMZIL is Zimbabwe’s largest financial services company and property holding group with its operations spanning sectors such as insurance, banking, asset management, property, stock broking and custodial services.