ZWG2.6bn block trade rattles market
BUSINESS REPORTER
A ZWG2.6bn block trade involving 62 276 714 shares in CBZ Holdings has sent ripples through Zimbabwe’s capital markets after the Public Service Pension Fund (PSPF) acquired an 11.91% stake in the financial services group.
The transaction, worth about US$100m, is believed to be the largest single block trade in the history of the Zimbabwe Stock Exchange (ZSE), underscoring the growing scale of institutional activity on the local bourse.
Block trades are large transactions, typically negotiated privately and executed through brokers, allowing investors to move substantial shareholdings without causing excessive disruption to market prices.
The identity of the seller, however, remains undisclosed. The shares were registered under Akribos Nominees, fuelling speculation among market participants over the ultimate owner behind the transaction.
The deal was executed at ZWG39.99 a share, valuing the 62.3m-share block at ZWG2.584bn.
The acquisition takes PSPF’s stake in CBZ Holdings to 21.67%, making it the second-largest shareholder in the financial services group. Cash-rich, State-owned pay-as-you-go pension and social security scheme, National Social Security Authority (NSSA) remains the largest shareholder with 23.5%, while the Mutapa Investment Fund, representing government interests, holds about 17%.
The size of the transaction and the use of a nominee vehicle have raised questions among market participants about ownership transparency, valuation and corporate governance.
Analysts said transactions of this magnitude require clear disclosure of the market participants and a strong investment rationale, particularly where public funds are involved.
Some brokers also questioned the pricing of the transaction, arguing that Zimbabwe’s equities market remains vulnerable to distortions.
The transaction also highlights the growing influence of institutional investors on the ZSE, where large trades can have an outsized impact on liquidity, valuations and market sentiment.
PSPF chief investment officer Dr Farai Gaba said the acquisition formed part of the fund’s strategy to build a diversified portfolio capable of preserving capital and generating long-term real returns for public sector contributors.
“The increased shareholding strengthens the fund’s strategic exposure to Zimbabwe’s financial services sector and reflects PSPF’s continued focus on investments that offer sustainable long-term value,” Gaba said.
The CBZ investment forms part of PSPF’s broader expansion into real estate, hospitality and infrastructure, as the fund seeks to diversify its portfolio and increase exposure to strategic assets.
In the hospitality sector, PSPF has established positions in major leisure and conferencing assets, including the Monomotapa Hotel in Harare and Caribbea Bay Resort in Kariba.
The fund has also committed capital to property, housing and social infrastructure projects across the country.
These include the Midlands Park development in Zvishavane, comprising residential housing and student accommodation, alongside other property and infrastructure investments.
Gaba said the increased CBZ shareholding would give PSPF greater exposure to the financial services sector while strengthening the diversification and balance of its investment portfolio.