ZHL pursues $10m capital raise
ZIMRE Holdings Limited (ZHL) says it is still pursuing the Emeritus International (Emeritus) transaction aimed at raising $10 million capital in Botswana to support operations.
The insurer said once completed, the transaction will have impact on the group’s share price.
“Negotiations for the Emeritus capital raise are still in progress which, if successfully concluded, the full impact of the capital raise are still being determined…This event may have a material effect on the price of the company’s securities,” it cautioned shareholders.
“Accordingly, shareholders are advised to continue exercising caution when dealing in the company’s securities until a full announcement is made,” ZHL said.
The capital raise initiative is part of the group’s restructuring exercise which commenced in 2016, where it is targeting to raise a total $30 million through a phased approach.
ZHL rebranded its reinsurance operations to Emeritus International, registered in Botswana, and is targeting to list on the Botswana Stock Exchange (BSE).
The group’s other regional operations are in Malawi, Mozambique, Botswana and Zambia.
According to ZHL’s results for the year ended December 31, 2018, the group indicated that low capital bases in regional operations and limited business retention slowed down the group’s growth potential.
Benjamin Kumalo, the group’s chairman, said the impact was more pronounced in Zambian and Mozambican reinsurance units, which were not able to absorb existing market insurance capacity.
Kumalo said the group injected $1,5 million into the region to enhance capacity and the impact of such will be felt in 2019.