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NewsDay

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Vingirai gets 26% stake in ZB

Business
BANKER, Nicholas Vingirai is set to assume a 26% shareholding in financial services group, ZB Financial Holdings Limited, as compensation for the loss of Intermarket Holdings Limited (IHL) more than a decade ago.

BANKER, Nicholas Vingirai is set to assume a 26% shareholding in financial services group, ZB Financial Holdings Limited, as compensation for the loss of Intermarket Holdings Limited (IHL) more than a decade ago.

BY BUSINESS REPORTER

ZBBank

Vingirai’s Intermarket Holdings Limited (IHL) was bought by ZBFHL, with the transaction concluded in 2006. This was after the Reserve Bank of Zimbabwe (RBZ) had bailed out IHL’s subsidiaries and later converted the debt into equity under a High Court scheme of arrangement.

The banker was alleged to have fled the country, with the central bank accusing him of externalisation at the height of former central bank chief, Gideon Gono’s crusade to weed the sector of “errant bankers”.

The entry of Vingirai into ZB would see the reconfiguration of the board to reflect his interests.

The move would see government’s shareholding being whittled to 5%, authoritative sources have said.

As at May 31, government had a 23,5% stake in ZBFH. The National Social Security Authority (NSSA) had 37,79% shareholding, ZB Financial Holdings (10,08%), while others had 28,63% stake. It could not be ascertained yesterday, which shareholders would be diluted.

NSSA board chairman, Robin Vela told NewsDay yesterday that any changes in ZBFH shareholding would not affect the authority.

“NSSA has its shareholding in ZB and will not be diluted by anything that happens at ZB,” he said.

Vingirai has been fighting to reclaim his lost crown after externalisation charges crumbled, with RBZ clearing the banker.

Despite the acquisition of the group by ZBFH, Vingirai did not relent. In 2013, High Court judge Justice Susan Mavangira ruled in Vingirai’s favour, removing a caveat, which covered most properties owned by the business.

No comment could be obtained from Vingirai and the ministry of Finance.

Finance minister Patrick Chinamasa was unavailable for comment, while the permanent secretary Willard Manungo’s number went unanswered. ZBFH executives referred all questions to the group’s shareholders.