HomeNewsNMBZ seeks $15m through private placement

NMBZ seeks $15m through private placement

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NMBZ HOLDINGS directors will be seeking shareholder approval at an extra-ordinary general meeting (EGM) set for next month to raise nearly $15 million in fresh capital to increase the capital base of its subsidiary through a private placement with strategic institutional foreign investors.

Business Reporter

The EGM has been slated for February 19.

Directors want passed as a special resolution the consolidation of the company’s shares from the existing authorised share capital and also increase the company’s authorised ordinary share capital.

“That in terms of the share subscription agreements between the company and strategic foreign investors and subject to the passing of resolutions one and two, the directors of the company be and are hereby authorised to raise fresh capital amounting to approximately $14,8 million through the issue to strategic foreign investors of 103 714 287 new ordinary shares in then share capital of the company at issue price per share of $0,1430 and that members hereby waive their preemptive rights in respect of that issue in terms of the Article 13,2 of the company’s articles of association,” reads a notice issued by the company yesterday.

Last November, the financial services group issued a cautionary statement amid indications that its banking unit was seeking capital to meet revised Reserve Bank of Zimbabwe minimum capital requirements.

The central bank raised minimum capital requirements for commercial banks to $100 million from $12,5 million and banks were expected to raise the capital in a staggered exercise which lapses in 2014.

Under this phased capitalisation programme, banks were expected to raise $25 million by December 2012.

NMBZ has a 25% stake in African Century Limited, a leasing business it owns together with African Century.

African Century has 30% shareholding in the group. African Century is also tipped to increase its shareholding in the group.

The company moved into NMBZ in 2010 after underwriting the group’s $10 million rights offer.

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