THE Zambia Privatisation Agency (ZPA) is pleased to announce that the Minister of Finance and Economic Development Honourable RDS Penza has signed the Sales Agreement with the Management Buy Out Team (MBO) for Zambia National Insurance Brokers (ZNIB) for the sale of 100% shares in the Company.
The purchase consideration for this transaction was K150 million for the core business. This transaction excludes all residential properties and the office buildings owned by ZNIB. These properties are now the responsibility of the ZPA who will dispose of them on behalf of the GRZ at a later stage.
The MBO Team comprises the following:
| Category | |
|---|---|
| Senior Management | 60% |
| Middle Management | 25% |
| Employee Share Ownership Scheme (ESOS) | 15% |
| Total | 100% |
The MBO Team has made a commitment to retain all, except for 35 employees who be will retrenched. The employees retained will continue to enjoy their existing terms and conditions of service.
ZNIB was regionally and locally advertised and only two bids were received from the MBO Team, and Mr. Justin Mwambazi
The transaction was negotiated by an independent negotiation team appointed by the ZPA Board. Mr. Emmanuel Chenda, Ndola Town Clerk was Negotiations Team Chairman, with Mr Willie Mubanga of Permanent Chambers as Team Lawyer.
The purchase consideration agreed with the Purchasers is in line with the value of ZNIB recommended by Messrs. Coopers & Lybrand, on the basis of discounted cashflow method.
ZNIB was established in 1975 following a merger of Insurance Brokers of Zambia Limited (IBZ) and J.H.Minet to form the sole registered insurance broking firm in Zambia. This was in conformity with the then Government decision to nationalise the insurance industry.
The Company was owned by the Zambian government through State Finance Development Corporation (FINDECO) 60 percent, with a 40 percent private interest through J.H.Minet. The Government shares were transferred from FINDECO to Zambia State Insurance Corporation and later in 1982 to ZIMCO. Between 1985 and 1990 the Minet shares were bought by ZIMCO ( in liquidation) which consequently held 100% shareholding, until March 1995 when the company reverted to direct Government ownership following dissolution of ZIMCO.
The Company's principal activity is to provide a comprehensive insurance brokerage service to the public in all classes of insurance, thus serving as an intermediary between the insuring public and the insurance companies. The Company's other activities include:
The acquisition by this team of Zambians, of Zambian National Insurance Brokers Limited marks yet another significant achievement in Government's commitment in ensuring that Zambians participate in the Zambian privatisation programme.
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