BIHL, whose three core subsidiaries performed unsatisfactorily in 2012 with operating profit weakening by 15 percent to P232 million is currently a 28.65 percent shareholder in FSG. It is planning to snap up the remaining shareholding in a multi-million take over deal.In a statement released to the Stock Exchange this week, the FSG board announced that BIHL is considering making an offer to buy the shares they currently do not hold in the funeral services company. "It is anticipated that a firm intention to make an offer will be received by the company within the next 21 days, whereupon an appropriate announcement will be made. For the purposes of the BSE requirements, the offer period is deemed to commence as at the date of this announcement and will endure until the offer becomes unconditional as to acceptances or lapses or is withdrawn," the statement said.
BIHL is looking at better returns from investments in associate firms to anchor earnings after a challenging 2012 in which flagship subsidiary Botswana Life was hard hit. Botswana Life usually contributes over 80 percent to the group's income but was affected by the erosion of household's disposable incomes.BIHL investments in associate firms such as Letshego and FSG contributed 40 percent to the group's P485 million profit before tax last year.Returns from investments in associate firms and joint ventures increased by 47 percent to P196.5 million last year largely due to an increased stake in another high performing company, Letshego in 2011. On the local bourse, FSG and Letshego are in the top rung of movers and shakers sitting at 12.3 percent and 24 percent in the black on a year to date basis.
