Interfin Financial Services (IFS) and Interfin Bank are engaged in negotiations with as yet to be identified investors that will lead to the injection of fresh capital and change in shareholding.
The development comes at a time when Interfin Bank, like other financial institutions and companies, has been facing liquidity challenges, which in some instances, has seen it failing to honour deposits on time.
Interfin is also one of three companies listed on the Zimbabwe Stock Exchange (ZSE) that have engaged officials at the local bourse over late release of financial results.
The other two are Gulliver and Zeco. ZSE listing rules state that companies, which fail to release results within three months after the end of the trading year, should be suspended from trading.
In a cautionary statement to shareholders yesterday, IFS board secretary Patrician Muchengwa said the institution “was working on various strategic initiatives as well as engaging in negotiations for a series of proposed transactions”.
He said the proposed initiatives and transactions were being considered by regulatory authorities.
“These proposed initiatives and transactions, if implemented successfully are likely to result in a significant change in the bank’s capital structure and its shareholding,” he said.
In yesterday’s trade on the ZSE, Interfin was one of the top losers of the day after it shed 20% to 2c.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
Since dollarisation in 2009 indigenous-owned financial institutions have been struggling to meet set capital requirements and the sector has been hit by a crisis of depositor confidence.
Early this month Reserve Bank of Zimbabwe governor Gideon Gono expressed satisfaction at recapitalisation plans by the Zimbabwe Allied Banking Group (ZABG) and Royal Bank.
ZABG and Royal had a negative capital of $15,35 million and $3,42 million respectively as at March 1 against the minimum requirement of $12,5 million.
A local company, Trebo and Khays, owned by Mines and Mining Development minister Obert Mpofu, was set to inject fresh capital in ZABG while Royal was in talks with Kenya-based Commercial Bank of Africa.
Genesis Merchant, with a negative capital of $3,2 million, was yet to find potential partners.
