A divorce of sorts is on the table. The insurance businesses will be separated from the banking & finance businesses.

Shareholders of CFCSH will get one share in the insurance business for each share held in CFCSH. That's an interesting and unprecedented move....you get a bonus share, but not in the company that you own...

I think this is a good move. The insurance arm, though profitable has been pulling down the group's profitability.

Now I will be able to sell off my shares in CFC Insurance and retain the once in CFC bank.

But what will all this mean to the price of CFCSH between now and the time the deal is concluded?

@Mukiha

We will need some analysis of the predicted positions after the split to make a decision. There could be something.

@ Hell,

CFC is demerging. The banking business will be demerged from the insurance business. Both CFC life and Heritage Insurance in the new company will have Liberty Insurance as a majority share holder with existing share holders of CFC being given a share for every share held in the new company. This new company will be listed in the NSE subject to approval by CMA, NSE, Finance Ministry and JSE.