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OLD Mutual Zimbabwe Limited (OMZL) shareholders on Wednesday approved a scheme to buy back 16.6 million of the company’s “B” class shares for treasury purposes.

OMZL is not listed on the Zimbabwe Stock Exchange, with its shares are traded over the counter.

Chairman Johannes !Gawaxab told shareholders at an annual general meeting the shares that would be acquired would not exceed five percent of the firm’s issued and fully paid up capital.

“The company will acquire Old Mutual Zimbabwe Limited shares from over the counter provided there are no bids in the market and then release the bids into the market where there are buyers who have not been able to secure shares from the market,” !Gawaxab said.

“The sole purpose of the share buyback will be to ensure there is no hiatus in the market and to guarantee the liquidity of the market so that there is continuous entry and exit from the market.”

OMZL’s issued share capital is made up of 249 035 156 “A” class shares of $0.0000032 each and 83 011 718 “B” class shares of a value of $0.000032 each.

Old Mutual, which posted a net profit of $105 million in 2013 up from $5 million the previous year, declared an ordinary dividend of $10 million and a preference dividend of $7.4 million.

Source : New Zimbabwe

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