FMB Capital Holdings Plc (FMBCH) has completed the acquisition of 42% shareholding in Barclays Bank of Zimbabwe Limited (BBZ) after shares worth $8,5 million changed hands on the Zimbabwe Stock Exchange.
In a statement today, Barclays Bank Zimbabwe (BBZ) said that FMBCH had successfully acquired a majority shareholding in Afcarme Zimbabwe Holdings (Pvt) Limited, the holding company for BBZ from Barclays Bank PLC.
“Afcarme has transferred with the approval of the ZSE, a 15% interest in BBZ to a newly established One Thousand Nine Hundred and Twelve Trust (1912) Employee Share Ownership Trust (1912 ESOT), for the benefit of all the current and future employees of BBZ. This was executed by way of a transfer of existing BBZ shares from Afcarme to the trust as an irrevocable donation (nil consideration). The minority listing, comprising the ZSE free float, is unaffected. Following completion of the transfer, Afcarme holds 52,68% of the issued share capital in BBZ,” the bank said.
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.
“FMB Capital Holdings Plc (FMBCH) and Barclays Bank Zimbabwe (BBZ) have announced the successful acquisition of a majority shareholding (81 percent) in Afcarme Zimbabwe Holdings (Pvt) Limited, the holding company for Barclays Bank of Zimbabwe Limited (BBZ) from Barclays Bank PLC (BBPLC),” reads the statement .
BBZ board chairman, Antony Mandiwanza said the completion of the transaction marked an important juncture in the history of the BBZ.
“It is a 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.
Barclays Plc will maintain 19 percent shareholding in Afcarme for a period of up to three years.
Prior to the transaction Afcarme donated a 15 percent stake in the Barclays Bank Zimbabwe to the bank’s employees through a newly established One Thousand Nine Hundred and Twelve (1912) Employee Share Ownership Trust (“1912”ESOT).
Other major shareholders of BBZ are Old Mutual and SCB nominees which hold 5,11 percent and 4,52 percent respectively.
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 US$496 million. This transaction will be the FMBCH’s first operation in Zimbabwe.