Old Mutual shores up stake in ZPI, Dawn

01 May, 2016 - 00:05 0 Views
Old Mutual shores up stake in ZPI, Dawn

The Sunday Mail

FINANCIAL services group Old Mutual Zimbabwe Ltd OMZL) is understood to have shored up its stake in listed property concerns Zimre Property Investments (ZPI) and Dawn Properties in a week where the mainstream industrial index rose above the psychological 100-point mark for the first time in 10 weeks.
Sources told The Sunday Mail Business last week that the property giant bought 16,3 million shares worth $262 000 in Dawn on April 25.

The deal accounts for 0,7 percent of Dawn’s total ordinary shares in issue.
Before the transaction, Old Mutual was the third largest shareholder in Dawn holding a 10,6 percent stake.

“Old Mutual has been mopping up shares of those shareholders that did not follow their rights during Dawn’s mandatory offer to minorities,” said a source who cannot be named for professional reasons.

No comment could be obtained from Old Mutual.
Brainworks Capital Management, which owns 47,5 percent of Dawn, made a mandatory offer to buy-out minority shareholders in the property firm last November at US2c per share.

The ZSE listing rules compel shareholders that own more than 35 percent of a quoted company to make such an offer.
In ZPI, Old Mutual bought a parcel of 43,4 million shares for $397 000 in two separate deals on Monday and Tuesday.

The first deal was concluded at a price of US0,95c per share and the second one at US0,87c.
The amount of shares exchanged in the transaction amount to 2,5 percent in ZPI.

Old Mutual previously had a 5 percent stake in ZPI.
Last year, the property concern’s earnings from equity investments and other interest-bearing assets tumbled 25 percent to $125 million.

The company, which owns several commercial properties across Zimbabwe including shopping malls and high-end office complexes, reported a 22 percent decline in rental income to $10,4 million in the same period.

OMZL’s shares closed 0,03 percent higher at US224c on Wednesday.
The stock has climbed 10,4 percent since January.

Last week, the mainstream industrial index climbed above 100 points for the first time since February 16.
By close of trade Wednesday, the index was up 3,5 percent, or 3,49 points, at 102,14 points after some gains in heavyweight stocks.

Industrials dropped to 99,8 points mid-February, falling below the 100-point benchmark for the first time since April 2009.
At midweek, the mining index remained unchanged at 20,16 points for the fourth successive week.

Total ZSE market capitalisation climbed 3,3 percent to $2,8 billion from $2,7 billion a week earlier.
However, year-to-date punters have lost over $300 million on the stock market.

During the review week, large capitalised counters rose the fastest. Beverage maker, Delta Corporation, soared 10 percent to US64c ahead of its 2015 earnings release slated for May 12.
The financials will show an 8 percent revenue decline year-on-year amid falling volumes, the company said in a trading update recently.
Industrial conglomerate, Innscor Africa Holdings jumped 14 percent to US21,88c.
The company is planning to spin off its retail unit before a separate listing on the ZSE.
Barclays Bank Zimbabwe Ltd rose 7 percent to US2,87c and OK Zimbabwe ended higher at US4,10c.
Telecommunications group Econet fell 2 percent to US25c.

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