Brainworks sells life assurance business

PRIVATE equity and advisory firm Brainworks has disposed of its local life assurance business in a $6,8 million deal.

“Brainworks Capital Management has entered into a share sale and purchase agreement with Nhaka Life Assurance Company in which the company will dispose of its 100 percent equity investment in GetSure Life Assurance, comprising 200 million ordinary shares to Nhaka for a total purchase consideration of $6 855 043,” the JSE listed firm said in a statement last week.
Brainworks, incorporated in Mauritius, had been major investors in the Zimbabwean hospitality, real estate, financial services and logistics sectors. The company said its disposal of GetSure is part of plans to exit the financial services industry to focus on its hospitality and real estate businesses.
“It is the company’s strategy going forward to focus on and expand its core business in Zimbabwe being hospitality, real estate and related investments, and therefore to exit its investments in the financial services industry, which are considered by the Board to be non-core investment areas,” the statement said.
The hospitality segment contributed 88 percent of the $58,6 million of the company’s total revenue during the year ended December 31, 2017, in which its revenues went up 22 percent compared to the previous period. The group says it expects that the hospitality and real estate segments will benefit from the recent political changes in Zimbabwe.
“The funds raised pursuant to the transaction and the liquidation of its other financial services assets will be applied towards reducing short term debt in the Company, thereby improving the Company’s balance sheet and positioning it for growth going forward,” the statement added.
GetSure is a private company registered in Zimbabwe which is currently licensed as a life insurance company. It was granted its operating licence in December 2014 by the Insurance and Pension Commission of Zimbabwe and commenced operations in August 2015. GetSure also holds 4,47 percent shares in technology driven, deposit-taking microfinance bank GetBucks. GetBucks is a public company registered in Zimbabwe and listed on the Zimbabwe Stock Exchange in January 2016.
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