Zimbabwe: Fidelity Life Capital Raise Talks Ongoing

20 February 2020

Zimbabwe Stock Exchange-listed insurance concern, Fidelity Life Assurance Zimbabwe is still in discussions that involve a potential capital raising transaction.

Shareholders have been notified of the ongoing discussions in intervals since July 22, 2019.

The company earlier hinted on the need to re-capitalise its business through a rights offer.

Said company secretary, Chipo Matongo in another cautionary statement released this week: "Further to the cautionary announcement dated July 22, 2019 and subsequent updates -- August 27, September 23, October 14, November 4, November 25, December 26, 2019 flowing into this year -- January 6, and 27, 2020 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."

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

It is, however, yet to be established why the transaction has taken so long and the technicalities that are involved.

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