Lawrence Sikutwa & Associates Limited and ZFI Holdings Limited, the two largest shareholders in Madison Financial Services (MFS), have separately executed Share Purchase Agreements with XYLEM Trading Limited, relinquishing their combined 72.05 per cent shareholding in the insurance giant for $35 million.
According to a market announcement, LSA and ZFI, a private limited company incorporated under the laws of the Republic of Mauritius and legal owner of 34.91 per cent of the ordinary issued shares in MFS, are relinquishing their shareholding in MFS following the execution of separate SPA.
Madison Financial Services has faced a series of liquidity, credit and solvency issues governance related lapses that triggered regulatory take over in 2019.
Xylem Chief Executive Officer Kajiya Kantumoya expressed not only confidence in Madison as a local bred company but the Zambian economy as a whole that despite the economic downturn, would soon rebound to allow Madison thrive.
“Our investment in Madison Financial Services signifies our confidence in the Zambian business landscape as well as the Zambian economy which we believe will get better going forward. As an investment target for us we believe Madison was a better target having a pedigree of over 28 years and being Zambian owned entity. The length of existence is beyond any private owned entity in Zambia while LSA has done a tremendous job that has taken the group this far listing on the Lusaka Stock Exchange (LuSE),” Mr. Kantumoya said.
“With Xylems $35million investment, we are positioned to recapitalize all the business units in the group, strengthen its corporate governance principles, introduce new and exciting products on the insurance side and in the asset management space through Madison Finance that the Zambian Public will appreciate and benefit the injection of new competitive blood that will take Madison to its number one spot in the country,” he said.
Xylem Trading (Pty) is a company and investment vehicle incorporated in South Africa with a diversified investment portfolio which includes regulated financial services in Mauritius, Zimbabwe, Mozambique and Seychelles.
XTL specializes in commodity trading in fuel and grain in the SADC.