Malawian Bank completes acquisition of majority stake in Barclays Zimbabwe

Malawian Bank completes acquisition of majority stake in Barclays Zimbabwe
Published: 16 October 2017 (861 Views)
MALAWI Stock Exchange listed FMB Capital Holdings has completed the acquisition of a majority stake in Barclays Bank Zimbabwe after receiving approvals for all regulatory requirements. This gives FMBCH, which is registered in Mauritius, an effective 42 percent in the Zimbabwe Stock Exchange listed bank, previously owned by Barclays Bank Plc, through its investment holding unit, Afcarne Zimbabwe Holdings.

Barclays Plc retains a 10 percent stake, BBZ workers 15 percent through an Employee Share Ownership Trust and the balance of 33 percent is free float listed on the ZSE. Both FMBCH and Barclays Bank Plc said that it remains 'business as usual' with no immediate changes anticipated to its service offering and network. Further, for the first 12 months after conclusion of the deal, the local bank will continue to operate under the Barclays Bank Zimbabwe brand with the FMBCH brand being introduced over a subsequent two year period.

BBZ board chairman, Antony Mandiwanza said "The completion of this transaction marks an important juncture in the history of Barclays Bank Zimbabwe. 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. ".

This transaction follows FMB's recent acquisition of Opportunity International Group's Malawi operations, Opportunity International Bank Malawi (OIBM). FMB is listed on the Malawi Stock Exchange and has two wholly owned subsidiaries incorporated in Malawi: The Leasing and Finance Company of Malawi, 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 in Mozambique and Botswana, and First Capital Bank in Zambia with total assets (at the end of June 2017) of $496 million. This transaction will be the FMBCH's first operation in Zimbabwe. The banking group's liquidity position and capital adequacy has consistently remained above 55 percent and 20 percent for the past five years and its non-performing loans were at 2,7 percent as at 31 Dec 2016 despite adverse market conditions. FMB chairman, Hitesh Anadkat said "This transaction marks a significant milestone in our steps to becoming a truly African bank offering financial solutions to the region.

"We share many of the same values as our colleagues at Barclays Bank Zimbabwe and we will continue to create meaningful value for all our stakeholders, customers, employees, investors and the Zimbabwean community at large."

Barclays Zimbabwe, alongside the Egyptian business, was not part of the 2013 deal that saw Barclays Africa, formerly Absa, acquire 8 African operations from its parent company due to high local political risk. Barclays Plc sold the stake in its Zimbabwean operation for about $40 million to FMB. Initially, the acquisition figure was speculated to be $60 million, but that was before it was resolved FMB would buy a 40 percent and 67 percent stake. Before FMB beat competition from a cocktail of other suitors, a bidding war erupted between a Barclays Bank Zimbabwe senior management consortium and FMB over one of the country's oldest and most iconic banking institutions.

The Bank registered a profit after tax of $9,5 million translating to a basic earnings per share of 0,44 cents for the period (2016 – 0,15 cents per share), for the half year to June 2017, as all income lines showed improvement on prior year.

- zimpapers


You May Like These Videos


There are no comments.

Latest stories

Violence must be condemned at all levels

by Dr Masimba Mavaza | 16 January 2019 | 49 Views

WATCH: Zimbabweans protest in Pretoria Embassy

by Mandla Ndlovu | 16 January 2019 | 65 Views

Britain warns its citizens in Zimbabwe

by UK gov | 16 January 2019 | 68 Views

PHOTOS: Evan Mawarire being arrested

by Mandla Ndlovu | 16 January 2019 | 57 Views

Zimbabwe kills commerce and lights, by killing the internet

by Staff reporter | 16 January 2019 | 78 Views

Zimbabwe crisis a warning to SA, says opposition leader

by Business Day | 16 January 2019 | 67 Views

Mugabe-aligned NPF calls for Mnangagwa's resignation

by African News Agency | 16 January 2019 | 82 Views

Calls for diaspora protests at Zimbabwe embassies

by | 16 January 2019 | 75 Views

Soldiers continue to patrol streets

by | 16 January 2019 | 76 Views

Mnangagwa to buy 'State-of-The-Art' Russian arms

by | 16 January 2019 | 74 Views

Mnangagwa says Zimbabwe protests 'fizzling out'

by newzimbabwe | 16 January 2019 | 71 Views

Zimbabweans need to do a serious soul searching

by Dr Masimba Mavaza | 16 January 2019 | 82 Views

PHOTOS: Mnangagwa, Mthuli Ncube meet Putin as #ZimbabweShutDown

by Staff Reporter | 16 January 2019 | 77 Views

WATCH: Man in civilian clothing shoots directly at protestors

by Mandla Ndlovu | 16 January 2019 | 82 Views

'Opposition leaders arrested as scores are killed' says Dzamara

by Mandla Ndlovu | 16 January 2019 | 82 Views

Latest update on day 2 of Army killings

by Mandla Ndlovu | 16 January 2019 | 81 Views

#ZimbabweShutDown enters day 3

by AP | 16 January 2019 | 86 Views

Zimbabwe businesses losing millions as shutdown continues

by Staff reporter | 15 January 2019 | 142 Views

South Africa 'confident' Mnangagwa govt will 'resolve situation'

by Staff reporter | 15 January 2019 | 136 Views

Malema's EFF 'extends its solidarity' with the people of Zimbabwe

by Staff reporter | 15 January 2019 | 142 Views

'Internet shutdown is unconstitutional,' says Jonathan Moyo

by Ndou Paul | 15 January 2019 | 144 Views

May's Brexit deal rejected by 230 votes

by BBC | 15 January 2019 | 94 Views

Strive masiyiwa speaks on Internet blackout

by Mandla Ndlovu | 15 January 2019 | 127 Views

'Looters not a threat to anyone,' says Amnesty International?

by Staff reporter | 15 January 2019 | 68 Views

PHOTOS: The unlucky protestors who were caught

by Social media | 15 January 2019 | 148 Views

Chamisa fires blank

by Dr Masimba Mavaza | 15 January 2019 | 148 Views

Almost every Choppies shop in Western suburbs was looted

by Social media | 15 January 2019 | 88 Views

Greyhound cancels trips to Zimbabwe indefinitely

by Mandla Ndlovu | 15 January 2019 | 96 Views

WATCH:Biti calls for an extra-ordinary SADC summit on Zimbabwe

by Mandla Ndlovu | 15 January 2019 | 116 Views

Soldiers turn rogue and join protestors?

by Mandla Ndlovu | 15 January 2019 | 146 Views

MDC appeals to International community

by Mandla Ndlovu | 15 January 2019 | 162 Views

Econet declines to comment on internet shutdown

by Staff reporter | 15 January 2019 | 154 Views