Wakanda News Details

Turnall lays ground for Nssa exit

BY KUDAZI KUWAZA ZIMBABWE Stock Exchange (ZSE)-listed tube and pipe producer, Turnall Holdings Limited yesterday laid the ground for the National Social Security Authority (Nssa)’s planned exit, telling the market to trade carefully in dealing with its shares. Last week, Nssa announced multiple divestures of a string of firms including Turnall, under a “refocusing” strategy that will see the fund raving up its ambition to invest in foreign markets. Under the plan, Nssa will sell its 32,55% shareholding in Turnall, together with 31,22% of its 66,22% stake in First Mutual Holdings Limited, where its holdings violate both the ZSE and Insurance and Pensions Commission (Ipec) regulations. The fund’s stake in mortgage lender, National Building Society (NBS), is also on sale with plans to find a strategic partner for the funder underway. “The board of directors of Turnall Holdings Limited advises all shareholders that one of the company’s shareholders, National Social Security Authority intends to dispose of its 32,55% shareholding in the business as part of its investment consolidation strategy,” Turnall company secretary Samson Mavende said in the statement. “This development may result in a transaction that can have a material impact on the value of the company’s shares. The board, therefore, advises shareholders to exercise caution when dealing in their Turnall Holdings Limited shares and consult their professional advisers before dealing in their shares until such time as the results of the said transaction is known,” he said. The fund last week said it planned to invest proceeds of the disposal in strategic foreign currency generating investments. Recently, Nssa bought into the pan-African lender, Africa Export and Import Bank, and is targeting massive deal in a regional insurer. “This strategic move will see Nssa keep a majority stake at 35% in compliance with ZSE and Ipec requirements (in First Mutual), while bringing in a strategic investor with solid financial resources,” Nssa says in a statement last week. “Nssa believes it is time to engage a strategic partner to broaden NBS’ product offering and enhance its capacity to deliver on affordable housing,” said Nssa. The pension fund has, for years, been weighed down by corruption and poor investment decisions, whose impact is reflected starkly in the poverty of pensioners. Now the company wants to sell some of its investments in order to invest in forex-earning assets and consolidate an investment portfolio scattered across the ZSE and into large property holdings.

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