FMB Capital Holdings Plc (FMBCH) has completed the acquisition of 42% shareholding in Barclays Bank of Zimbabwe Limited (BBZ).
BY BUSINESS REPORTER
The acquisition gives FMBCH in charge of the local bank with Barclays Plc retaining 10% stake, employees through an employee share ownership trust (15%) and 33% will remain listed on the Zimbabwe Stock Exchange.
The transaction had been thrown in controversy with some politicians trying to block the deal. Last week, Zanu PF youth secretary Kudzanai Chipanga appealed to President Robert Mugabe to block the deal on the grounds that locals had not been given an opportunity to acquire the shares.
In a statement, BBZ announced the successful transaction of FMBCH which also has banking operations in Malawi, Mozambique, Zambia and Botswana.
“FMB Capital Holdings Plc (FMBCH) and Barclays Bank Zimbabwe (BBZ) have announced the successful acquisition of a majority shareholding in Afcarme Zimbabwe Holdings (Pvt) Limited, the holding company for Barclays Bank of Zimbabwe Limited (BBZ) from Barclays Bank PLC (BBPLC). Completion of this transaction comes after all statutory and regulatory requirements were fulfilled,” BBZ said.
Last year, Barclays Plc announced its intention to divest from the local operation. It had 68% shareholding in the bank.
Despite the change of ownership both FMBCH and Barclays said it was ‘business as usual’ with no immediate changes anticipated to its service offering and network.
BBZ said the acquisition would see them relinquish the usage of the Barclays brand name after the first 12 months following conclusion of the deal, with the FMBCH brand being introduced over a subsequent two year period.
BBZ board chairman, Antony Mandiwanza said the completion of the transaction marked an important juncture in the history of the BBZ.
“It is testament to the successful franchise that the institution has become, particularly since dollarisation and in the current challenging macroeconomic environment, as evidenced by our 2017 half year results,” he said.
FMB is listed on the Malawi Stock Exchange and has two wholly-owned subsidiaries incorporated in Malawi: The Leasing and Finance Company of Malawi Limited, a licensed financial institution engaged in deposit taking and asset finance, and FMB Capital Markets Limited, a licensed portfolio manager.
The group also has interests in Capital Bank Limited in Mozambique and Botswana, and First Capital Bank Limited in Zambia with total assets at the end of June 2017 of $496 million.
FMB chairman Hitesh Anadkat said the transaction marked a significant milestone in their steps to become a truly African bank offering financial solutions to the region.
“We share many of the same values as our colleagues at Barclays and we will continue to create meaningful value for all our stakeholders – customers, employees, investors and the Zimbabwean community at large,” he said.