Harare — CFX Financial Services shareholders yesterday approved the company's rescue plan and will proceed with a rights offer to be underwritten by Interfin Holdings.

Shareholders also approved the directors' proposal to issue new CFX shares to the underwriter by way of a private placement at a premium 10 percent above the rights offer subscription price.

This will be done to an extent it may be necessary for the purpose of ensuring the underwriter obtains a maximum of 51 percent in the issued ordinary share capital of CFX FS post the transaction.

CFX, struggling to meet the Reserve Bank of Zimbabwe minimum capital requirements, is on the verge of insolvency due to capital inadequacy.

The company has also been making losses as a result.

CFX directors had strongly warned shareholders that "in the event shareholders do not approve the proposed transaction, the directors will be left with no option but to liquidate both the company and the bank.